Excel spread sheet solution

Excel spread sheet solution - Down payment percentage 20.0%...

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Purchase or Rent Analysis Inputs Present Worth Analysis Length of ownership/renting (years) 5 Note: cash inflows are negative values; cash outflows are positive values Personal interest rate (percent) 10.0% Renting Renting Present Worth Deposit (returned at departure) $1,200 Deposit $470.65 Monthly payments (first year) $1,200 Monthly payment (base) $56,478.44 Monthly rent change each year $25 Monthly rent change each year $2,058.54 Renters insurance (monthly) $35 Renters insurance $1,647.29 Renting total cost $60,654.92 Purchase Purchase Present Worth Application/closing fees $2,000 Application/closing fees $2,000.00 Purchase price $150,000 Monthly mortgage payments $37,575.25
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Unformatted text preview: Down payment percentage 20.0% Down payment $30,000.00 Loan interest rate (percent) 7.0% Loan length (years) 30 Monthly insurance and tax $200 Monthly insurance and tax $9,413.07 Monthly maintenance $50 Monthly maintenance $2,353.27 Future selling price $160,000 Equity in house ($28,591.65) Sales commission/fees (percent) 7.0% Sales commission/fees $6,807.23 Owning total cost $59,557.18 Calculations Monthly mortgage payment $798.36 Present worth advantage: Mortgage balance at time of sale $112,957.91 Purchase Home $1,097.75 A B C D E F G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27...
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This note was uploaded on 01/24/2012 for the course ECON 421 taught by Professor Balch during the Summer '11 term at USC.

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