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aul wants to purchase his own home. He currently lives in an apartment, and his rent is being paid by his parents. Paul's parents have informed him...

  1. aul wants to purchase his own home. He currently lives

in an apartment, and his rent is being paid by his parents. Paul’s parents have informed him that they would not pay his mortgage pay- ments. Paul has no savings, but can save $400 per month. The home he desires costs $100,000, and his real estate broker informs him that a down payment of 20% would be required. If Paul can earn 8% on his savings, how long will it take him to accumulate the required down payment?

  1. Paul  will be able to save $400 per month (which can be used for mortgage payments) for the indefinite future. If Paul finances the remaining cost of the

home (after making the $20,000 down payment) at a rate of 9% over 30 years, what are his resulting monthly mortgage payments? Can he afford the mortgage?



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Paul.xlsx

Savings
Cost
Down payment
Down payment
Interest
Time required $400
$100,000
20%
$20,000
8%
43.30 Months
3.61 Years Savings
Cost
Down payment
Mortgage
Interest
Years
Monthly payment $400
$100,000...

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