You buy a $200,000 house using a 30-year mortgage. At the end of the 15th year you need to replace the roof and pay $15,000. At the end of the 10th and 20th year, you will need to replace the hot water heater and pay $2,000 each time. If i-6%, what is the equivalent uniform annual cost of owning the house?
You buy a $200,000 house using a 30-year mortgage. At the end of the 15th year you need to replace the roof and pay $15,000. At the end of the 10th and 20th year, you will need to replace the hot water heater and pay $2,000 each time. If i-6%, what is the equivalent uniform annual cost of owning the house?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:You buy a $200,000 house using a 30-year mortgage. At the end of the 15th year you will
need to replace the roof and pay $15,000. At the end of the 10th and 20th year, you will need to
replace the hot water heater and pay $2,000 each time. If i-6%, what is the equivalent uniform
annual cost of owning the house?
nid w
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