9. You are going to buy your first house, you have saved $4,000 to put down and have been qualified for a 20 or 30 year loan at a rate of 4.5% interest. You are recently out of college and not making much money yet so you want to keep your monthly payment low. You can afford a monthly payment of $900. a. What price house could you afford if you did a 20 year loan? b. What price house could you afford if you did a 30 year loan? C. You decide to do the 30yer loan. After 10 years you sell your home for $220,000 and pay off the rest of the loan on your house how much money do you make?

9. You are going to buy your first house, you have saved $4,000 to put down and have been qualified for a 20 or 30 year loan at a rate of 4.5% interest. You are recently out of college and not making much money yet so you want to keep your monthly payment low. You can afford a monthly payment of $900. a. What price house could you afford if you did a 20 year loan? b. What price house could you afford if you did a 30 year loan? C. You decide to do the 30yer loan. After 10 years you sell your home for $220,000 and pay off the rest of the loan on your house how much money do you make?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 5CE

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