You would like to buy a house and are thinking about your budget. You have $50,000 in cash that you could use as a down payment. You are also willing to pay $2,000 per month for your mortgage over the next 20 years. After checking various offers, you decided that you would like to have a fixed interest mortgage, the best one that suits you is currently sold with a yearly interest rate of 11%. Please calculate the upper price ceiling for any house you might be able to purchase
You would like to buy a house and are thinking about your budget. You have $50,000 in cash that you could use as a down payment. You are also willing to pay $2,000 per month for your mortgage over the next 20 years. After checking various offers, you decided that you would like to have a fixed interest mortgage, the best one that suits you is currently sold with a yearly interest rate of 11%. Please calculate the upper price ceiling for any house you might be able to purchase
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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You would like to buy a house and are thinking about your budget. You have
$50,000 in cash that you could use as a down payment. You are also willing to
pay $2,000 per month for your mortgage over the next 20 years. After checking
various offers, you decided that you would like to have a fixed interest mortgage,
the best one that suits you is currently sold with a yearly interest rate of 11%.
Please calculate the upper
purchase.
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