Question

Before you upload your file, ensure your name appears on the top of every page of your document. 1. Find an advertisement for a house or condominium that costs less than $150 000. Using either the formula or your graphing calculator, determine the monthly payments. The bank offers you a rate of 5.7%/a compounded monthly and amortized over 25 years as long as you make a down payment of at least 5%. 2. Calculate and add up all of the initial estimated costs involved in purchasing a new home (i.e., moving truck, land transfer taxes, lawyer fees, etc.) 3. If you were 22 years old, attending your final year of college, and working a part time job earning $1200 per month, would you rent or buy? Explain your reasoning (consider down payment, risk of repairs needed, your age, etc.)

renting versus Owning

Answer 1

Link for the advertisement:

https://nobbas.com/houses?listingCategory=Purchase&priceMin=75000&priceMax=150000&place=New%20York,%20NY,%20USA&northEastLat=40.9175771&northEastLong=-73.70027209999999&southWestLat=40.4773991&southWestLong=-74.25908989999999&propertyId=1446913

Formula for calculating EMI

EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount or principal, R is the interest rate per month [if the interest rate per annum is 11%, then the rate of interest will be 11/(12 x 100)], and N is the number of monthly installments.