3. Housing prices vary a great deal if you save 2,000.00 a year by renting a cheaper place and borrowed 8,000.00 per year for four years with deferred interest at 7% compounded annually, how much will you owe at the end of four years?

3. Housing prices vary a great deal if you save 2,000.00 a year by renting a cheaper place and borrowed 8,000.00 per year for four years with deferred interest at 7% compounded annually, how much will you owe at the end of four years?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

3. Housing prices vary a great deal if you save 2,000.00 a year by renting a cheaper
place and borrowed 8,000.00 per year for four years with deferred interest at 7%
compounded annually, how much will you owe at the end of four years?

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Paying rent and insurance premiums are examples of an annuity due. Suppose you have to pay a monthly rents of $1,800 for an apartment studio in LA at the beginning of every month. The annual interest rate is 4%. What comes closest to the present value of the monthly rents if you intend to live there for 24 months and the rent is not expected to change? 28540 45050 43000 41600 000
Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.84% interest. Suppose also that you can put down 30%. What are the monthly payments? (Round your answer to the nearest cent.) $ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.) $ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)
Suppose you want to buy a $140,000 home. You found a bank that offers a 30-year loan at 3.3% APR. What will be your monthly payment? (Round to the nearest cent.) $ How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) $ Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) $ How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) S How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.) S Search hp
Suppose you want to accumulate $20,000 for a down payment on a house in 5 years. How much must you deposit today into an account with an APR of 5% compounded monthly in order to have $20,000 in 5 years? PV = PMT= FV = APR = Periods = Compounding:
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Suppose you can afford to pay $ 275 a month for 5 years towards a new car with no down payment. If the current interest rates are 5%, how expensive a car can you afford?
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Suppose you can afford to pay $ 350 a month for 5 years towards a new car with no down payment. If the current interest rates are 4.5%, how expensive a car can you afford?

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