Individual project, Part A, DUMINICA Andrada

do so, we must use the formula: ((1=i)/(1=g))-1; The i in this formula is the effective interest rate, since it considers compounding. To compute it, we have to use the formula: (1+ r/m)^m-1, where m is the number of compounding periods and r, the nominal interest rate. R is 5%, because it is the interest rate without considering any fees or compounding interest. M is 12, because there are 12 compounding periods in the year (compounding is once a month). On the excel sheet, the calculation has been made at the top of the sheet, annual effective i . As the title of the calculation lets us know, this effective interest rate is annual. To convert it back to months, we simply divide it by twelve. i e = ¿ -1 = (1+( 0.242% 12 ¿¿¿ 12 - 1= 5.116% i e monthly = i e 12 = 5.116% 12 = 0.426% We then plug this interest rate into the i° formula. On my excel sheet, i° is computed at the top left corner and has a value of 0.26%. i° = 1 + i 1 + g − 1 = 1 + 0.426 % 1 + 0.167 % − 1 = 0.26% Then we can use the geometric gradient to present worth conversion factor (P/A,g,i,N) , whose formula is: (((1+i°)^N-1/ i°(1+ i°)^N)(1/(1+g)); i° being 0.26%, g being 0.167% and n being 300 (months). Once the factor is computed, we have to multiply it by each of the different annuities (rent) to find the present value of the rent of each sector. ( P A ,g,i, N ) = ( ( 1 + i ° ) N − 1 i ° ( 1 + i ° ) N ) ( 1 1 + g ) = ( ( 1 + 0.26% ) 300 − 1 0.26% ( 1 + 0.26% ) 300 ) ( 1 1 + 0.167% ) = 208.0 To compute the present value of the rent, we multiply the annuity with the geometric gradient to present worth factor. This will turn the annuity over 300 months to a present value. PV rent = A ∗ ( P A ,g,i ,N ) = 4293.0 ∗ ( 208.0 ) = 892877.51 $ House

After analyzing my score sore sheet, I could notice that the sector 14- Mercier-Hochelaga Maisonneuve has the lowest housing score, which is -53.5. The excel sheet is joined to this report in PDF format as well as in excel format.