9. You are going to buy your first house, you have saved $4,000 to put down and have been qualified for a 20 or 30 year loan at a rate of 4.5% interest. You are recently out of college and not making much money yet so you want to keep your monthly payment low. You can afford a monthly payment of $900. a. What price house could you afford if you did a 20 year loan? b. What price house could you afford if you did a 30 year loan? C. You decide to do the 30yer loan. After 10 years you sell your home for $220,000 and pay off the rest of the loan on your house how much money do you make?
9. You are going to buy your first house, you have saved $4,000 to put down and have been qualified for a 20 or 30 year loan at a rate of 4.5% interest. You are recently out of college and not making much money yet so you want to keep your monthly payment low. You can afford a monthly payment of $900. a. What price house could you afford if you did a 20 year loan? b. What price house could you afford if you did a 30 year loan? C. You decide to do the 30yer loan. After 10 years you sell your home for $220,000 and pay off the rest of the loan on your house how much money do you make?
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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Transcribed Image Text:scenc
* Rendallstudents -h..
G Home | Schoology Quiz | ReadTheory
A Classroom
M Frontier Aca demy..
9 8th grade-Symbal..
n No
lity
Request edit access
SH
9. You are going to buy your first house, you have saved $4,000 to put down and
have been qualified for a 20 or 30 year loan at a rate of 4.5% interest. You are
recently out of college and not making much money yet so you want to keep
your monthly payment low. You can afford a monthly payment of $900.
a. What price house could you afford if you did a 20
year loan?
b. What price house could you afford if you did a 30 year loan?
C. You decide to do the 30yer loan. After 10 years you sell your home for
$220,000 and pay off the rest of the loan on your house how much
money
do
you
make?
Transcribed Image Text:Quiz | Readine
Classroom
M Frontier Aca demy.
8th grade-Symbal..
Request edit access
9. You are going to buy your first house, you have saved $4,000 to put down and
have been qualified for a 20 or 30 year loan at a rate of 4.5% interest. You are
recently out of college and not making much money yet so you want to keep
your monthly payment low. You can afford a monthly payment of $900.
a. What price house could you afford if you did a 20 year loan?
b. What price house could you afford if you did a 30 year loan?
C. You decide to do the 30yer loan. After 10 years you sell your home for
$220,000 and pay off the rest of the loan on your house how much
money do
you
make?
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Annuity refers to series of annual payment which are paid or received at start or end of specific period over constant period of time. It is either used as recovery or accumulation of lump sum amount considering compounding factor.
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