The Marco famly-comprising Mrs. Marco aged 40, Mr. Marca, aged 39, and their three yourg chidren-relocated to Barcelona in lanuary 2020 when Mrs Marco received a job offer from an international firm. They rented a three-bedroom condominium in Barcelona for 2.150 per month, which included parking and fees. While renting made ife easy, the Marce family began weighing the pros and cons of purchasing a flat, in the same building that became avalable in June 2020. The idea of home oenership as a form of long term investment appealed to the couple. The preliminary rental payments could be used for mortge payments instead. While searching for the right property they found a nice apartment at one of the best locations of the city. The apartment was owned and had been promoted by a state-owned construction company and was offering two alternatives Qetioni renting the apartment with a perpetual contract, meaning forever. The family was very happy Iving in that area, and they had the chance to live there forever at an offered price of 1,450 EUR the tirst month, and the rent price will be growing by a 015N monthly. This option would prevent the Marco family from applying for a loan, which represented a heawy burden off the family budget. Qetion l consited in acquiring the property with a mortgage scheme for 30 years. The total price of the apartment is 850.000E. The family can pay an initial down payment of 250,000 EUR and the rest (600,000 EUR) to be paid in constant monthly payments with an annual interest rate of 2.75% compounded monthly. Mrs. Marco establihes the masimum amount they can pay monthly as 2.250. In case of taking option what is the amount of the monthly payment the Marco family should pay in 30 years (in month 360)7 (ante the amountto be pad that month, show the calculations) In case of taking option I, how much money will have the Marco tamily paid in total after 30 years? If the Marco family decides to leave Barcelona in 10 years, to attend a better offer elsewhere, what is the present value of the rental contract offered by the owner as optioni? (consider 2.75N compounded monthly as the interest/dscount rate) If Mrs Marco decides to buy the apartment, and accepts Option i, what will be the amount of each monthly payment to be done during the nest 30 vears? Mrs. Marco beleves that, if she takes option and acquires the fut, she might be interested in seling the apartment in 30 years' time. If she wants to
The Marco famly-comprising Mrs. Marco aged 40, Mr. Marca, aged 39, and their three yourg chidren-relocated to Barcelona in lanuary 2020 when Mrs Marco received a job offer from an international firm. They rented a three-bedroom condominium in Barcelona for 2.150 per month, which included parking and fees. While renting made ife easy, the Marce family began weighing the pros and cons of purchasing a flat, in the same building that became avalable in June 2020. The idea of home oenership as a form of long term investment appealed to the couple. The preliminary rental payments could be used for mortge payments instead. While searching for the right property they found a nice apartment at one of the best locations of the city. The apartment was owned and had been promoted by a state-owned construction company and was offering two alternatives Qetioni renting the apartment with a perpetual contract, meaning forever. The family was very happy Iving in that area, and they had the chance to live there forever at an offered price of 1,450 EUR the tirst month, and the rent price will be growing by a 015N monthly. This option would prevent the Marco family from applying for a loan, which represented a heawy burden off the family budget. Qetion l consited in acquiring the property with a mortgage scheme for 30 years. The total price of the apartment is 850.000E. The family can pay an initial down payment of 250,000 EUR and the rest (600,000 EUR) to be paid in constant monthly payments with an annual interest rate of 2.75% compounded monthly. Mrs. Marco establihes the masimum amount they can pay monthly as 2.250. In case of taking option what is the amount of the monthly payment the Marco family should pay in 30 years (in month 360)7 (ante the amountto be pad that month, show the calculations) In case of taking option I, how much money will have the Marco tamily paid in total after 30 years? If the Marco family decides to leave Barcelona in 10 years, to attend a better offer elsewhere, what is the present value of the rental contract offered by the owner as optioni? (consider 2.75N compounded monthly as the interest/dscount rate) If Mrs Marco decides to buy the apartment, and accepts Option i, what will be the amount of each monthly payment to be done during the nest 30 vears? Mrs. Marco beleves that, if she takes option and acquires the fut, she might be interested in seling the apartment in 30 years' time. If she wants to
Chapter1: Making Economics Decisions
Section: Chapter Questions
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