# Wha t is a fa ir pric e for the prope rty a ssuming

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Unformatted text preview: ing tha t the building's life is 35 ye a rs? (E nte r just the numbe r without the \$ sign or a c omma ; round off de c ima ls.) Yo u entered : https://c la ss.c our se r a .or g/intr of ina nc e - 005/quiz /f e e dba c k? submission_id= 92142 3/8 16/2/2014 Quiz Fe e dba c k | Cour se r a 173979 Yo ur Ans wer 173979 Sco re 1 0 .0 0 Tota l Ex p lanatio n Corre c t. This is a PV c a lc ula tion of a a nnuity. 1 0 .0 0 / 1 0 .0 0 Ques tio n Ex p lanatio n A PV of a n a nnuity proble m in a n inte re sting re a l world c onte xt. The va lue c a nnot be more tha n \$420,000. Why? Question 6 (10 points) Me la nie a nd Ste phe n Ja c kson a re purc ha sing the ir first house . The house c osts \$360,000. The y ha ve put a 20 pe rc e nt down pa yme nt (tha t is, a n a mount tha t ba nks should re quire you to pa y out-of-poc ke t), but will the re fore fina nc e the re st. The y a re c onside ring a fixe d ra te 30-ye a r mortga ge a t a 5.25% APR with monthly pa yme nts. How muc h will the Ja c ksons...
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## This test prep was uploaded on 04/06/2014 for the course FINANCE 101 taught by Professor Deck during the Spring '12 term at Michigan State University.

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