Unformatted text preview: rowth semiannually. In 15 years, how much money will he have saved? Problem 12
You are making a decision whether to buy a house or continue renting. You and your landlord
have negotiated rent at $2,500 per month for the next 5 years, with an increase to $3,000 for
the five years thereafter. Rent is paid at the beginning of every month.
Alternatively, you can buy a house and enter into a 10-year mortgage. The house requires a
down payment of $10,000. Mortgage payments are set at $1,900, based on a market interest
rate of 3.5%. They are paid at the end of every month.
Which alternative is the least costly over the next ten years? Raising Marks. Raising Money. Raising Roofs.
www.schoolsos.com Students Offering Support: Wilfrid Laurier University Problem 13
Which investment grows to a larger future value? Assume 5% nominal interest rate.
a) $120 payment every year for 5 years
b) $10 payment every month for 5 years Problem 14
A plaintiff awarded damages in civil court may be given a structured settlement,...
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This note was uploaded on 02/07/2014 for the course BU 111 taught by Professor Jessicastockie during the Fall '08 term at Wilfred Laurier University .
- Fall '08