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Unformatted text preview: (6pts) Determine your potential wealth increase [net change in your equity] in present value terms as of the purchase date for each option assuming you sell the house after 4 years? 2) You are considering buying a $100,000 Condo with the following finance options. You can make a 20% down payment and borrow the remaining 80% at 6.25% for 30 years (monthly pmts) or you can put 5% down and pay 3 points to borrow the 95% balance at 6 % (monthly pmts.) a) Determine the payments for each option. b) Which option will have the lowest present value total cash outlay given you intend on staying in the condo only 4 years? c) Which option leaves you in the best increase in wealth when you sell the house after 4years?...
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This note was uploaded on 02/22/2012 for the course MANEC 453 taught by Professor Jerrynelson during the Winter '10 term at BYU.
- Winter '10