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you currently pay $10,000 per year in rent to landlord for a $100,000 house, in which you are considering purchasing. You can qualify for a loan of...

This question was answered on Jan 20, 2013. View the Answer
you currently pay $10,000 per year in rent to landlord for a $100,000 house, in which you are considering purchasing. You can qualify for a loan of $80,000 at 9% if you put $20,000 down on the house. To raise money for the down payment, you would have to liquidate stock earning a 15% return. Neglect other concerns, like closing costs, capital gains, and tax consequences of owning, and determine whether it is better to rent or own.
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Question: You currently pay $10,000 per year in rent to a landlord for a $100,000 house, which you are considering purchasing. You can qualify for a loan of $80,000 at 9% if you put $20,000 down on...

This question was asked on Jan 14, 2013 and answered on Jan 20, 2013.

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