Q4 A. (20 Marks) Suppose you want to buy a new house. You currently have $15,000...
Q4 A. (20 Marks) Suppose you want to buy a new house. You currently have $15,000 and you figure you need to have a 10% down payment. If the type of house you want costs about $200,000 and you can earn 7.5% per year, how long will it be before you have enough money for the down payment? .
1. You are planning to buy a new house. You currently have $35,000 and your bank told you that you would need a 15% down payment plus an additional 4% in closing costs. If the house that you want to buy costs $250,000 and you can make a 7% annual return on your Investment, determine the following: a) b) When will you have enough money for the down payment and closing costs, assuming that the $35,000 is the only investment...
You are planning to buy a new house. You currently have 535,000 and your bank told you that you would need a 15% down payment Jus an additional 4% in closing costs. If the house that you want to buy costs $250.000 and you can make a 7% annual return on your avestment, determine the following: When will you have enough money for the down payment and closing costs, assuming that the $35.000 is the only investment that you make?...
You want to buy a house that costs $200,000 and have saved up enough for the 10% down payment. You will be borrowing the rest from the bank at an annual rate of 9% compounded s.a. through a 25 year mortgage. How much will your monthly payments be? How much of the first monthly payment will go towards principal? What will be the total cost of your house? How much remains owing at the end of the 3 years, and...
In order to buy a house you want to accumulate a down payment of $15,000. You can do that by putting a certain sum of money every month in a savings account for the next four years. The account credits interest at the rate of six percent. What is your required monthly deposit? Relevant Periods= Relevant Rate= Deposit Amount=
You want to buy a house in five years. You prefer to live in an area in which houses are currently selling at an average price of $325,000. You know that the average price of the houses in the area will likely increase by 1.25% per year over the next five years. What will be the average price of a house in the area in five years? Nper PMT PV You know that 20% of the price of the house....
You want to buy a house that costs $200,000 and have saved up enough for the 10% down payment. You will be borrowing the rest from the bank at an annual rate of 9% compounded s.a. through a 25 year mortgage. How much will your monthly payments be? How much of the first monthly payment will go towards principal? What will be the total cost of your house? How much remains owing at the end of the 3 years, and what...
You want to buy a house that costs $200,000 and have saved up enough for the 10% down payment. You will be borrowing the rest from the bank at an annual rate of 9% compounded s.a. through a 25 year mortgage. How much will your monthly payments be? How much of the first monthly payment will go towards principal? What will be the total cost of your house? How much remains owing at the end of the 3 years, and...
2. I want to buy a house in 5 years. I need to have a down payment of $50,000. How much do I need to have today in order to have the down payment, if I can earn 4%?
You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $8,000 at the end of the first year, and you anticipate that your annual savings will increase by 20% annually thereafter. Your expected annual return is 7%. How much will you have for a down payment at the end of Year 3? Do not round intermediate calculations. Round your answer to the nearest cent.