The Bainter family is moving to a new town and needs a place to live. The Bainters are considering renting or purchasing a home and have found a suitable option for each option. • The home for sale is listed at $150,000.00. They have $30,000.00 for a down payment and are qualified for a fixed rate 30-year mortgage with an annual interest rate of 4.2%. • The rental home is currently $900.00 per month, with rent expected to increase approximately $75.00 every years. 1. Calculate the monthly mortgage payment amount using the formula: M = P_*(¹+7)" (1+r)" 1 2. For each option, calculate the total costs after 1 year, 5 years. 10 years and 15 years. Include additional costs of home ownership such as taxes and home insurance. 3. Consider advantages and disadvantages of renting versus purchasing a home. 4. Determine which option is better over each interval: 1 year, 5 years, 10 years and 15 years. Defend conclusions with evidence. Here is the rubric for your project Factors to Consider Each person has their own unique circumstances when choosing whether to rent or purchase a home. These are several factors to consider: 1. Length of time: The longer a person plans on living in an area, the more they can spread out the additional costs of purchasing a home. 2. Property value: Note the median housing price declined in the late 2000s due to a housing recession. 3. Additional costs: When purchasing a home, closing costs, interest on a mortgage, down payment, higher insurance, and property taxes can add up quickly. 4. Tax savings: Changes to tax laws may result in an owner not being able to deduct interest on income taxes. ur progress has been saved < Question 1 of 4 > Suppose the Bainters purchase the $150,000.00 home with a 20% down payment. a 30-year mortgage, and an interest rate of 4.2%. Annual property taxes are $1920.00. Home insurance is $750.00 per year, which is to be placed into an escrow account. What is the Bainters' monthly cost if they purchase the home? Enter your answer as a dollar amount such as: $206 75

Compare the monthly payment and total payment for the following pair of $180,000 loan options.  Assume that both loans are fixed rate and have the same closing costs.    Option 1: A 30-year loan at an APR of 4.65%.    Option 2: A 15-year loan at an APR of 3.85%

With a typical installment loan, you are asked to sign a contract stating the terms of repayment. If you pay off the loan early, you are entitled to an interest rebate. For example, if you finance $500 and are charged $90 interest (APR 8.46%), the total to be repaid is $590 with 24 monthly payments of $24.59. After 1 year, you decide to pay off the loan, so you figure that the rebate should be $45 (half of the interest for 2 years), but instead you are told the interest rebate is only $23.40. What happened? Look at the fine print on the contract. It says interest will be refunded according to the Rule of 78. The formula for the rebate is as follows: INTEREST REBATE =  k(k + 1) n(n + 1)  × FINANCE CHARGE where k is the number of payments remaining and n is the total number of payments. Determine the interest rebate on the following. (Round your answers to the nearest cent.) (a) $1,086 interest on an 18-month loan; pay off loan after 12 months$ (b) $340 interest on a 2-year…