Question
In: Finance
is it cheaper to pay $2000 per month for campus housing or to purchase a house...
is it cheaper to pay $2000 per month for campus housing or to purchase a house near campus for $100000 assuming that you are eligible for a 4% APR 30 year fixed rate HUD mortgage loan with 3 % down payment? Show your work.
Solutions
jeff jeffy answered 5 months agoRelated Solutions
You can afford to pay up to $2000 in payments every month for housing and have...
You can afford to pay up to $2000 in payments every month for
housing and have $80,000 in savings (you don't anticipate and
increase in income/savings). Which of the following mortgages would
allow you to buy the most expensive property?
A 25 year FRM with 2.5% contract interest rate and .9 LTV.
A 30 year fully amortizing FRM with 4.2% contract interest rate
and .85 LTV.
A 30 year FRM with 4.2% contract interest rate, .9 LTV and a
balloon...
The average electricity usage per month for a 2000 ft2 house is 550 kWh and the...
The average electricity usage per month for a 2000
ft2 house is 550 kWh and the standard deviation is 180
kWh.
What is the probability that a household will use more than 750
kWh per month?
It might help to sketch the distribution and put the
important information on the graph.
z=? p(x>750)=?
You can afford payments of $700 per month for the purchase of a house.
You can afford payments of $700 per month for the purchase of a
house.a) What is the largest amount you can finance for this house at
3.2% APR for 30 years? (Round to the nearest dollar.) b) How much total will you pay the finance company at the end of
the 30 years for this house if you are paying $700 per month for
thirty years? c) Now you are curious what the payments would be if you
financed the same amount...
Employees earn vacation pay at the rate of one day per month. During the month of...
Employees earn vacation pay at the rate of one day per month.
During the month of June, 10 employees qualify for one vacation day
each. Their average daily wage is $150 per day. Which of the
following is the necessary adjusting journal entry to record the
June vacation benefits?
A stock is expected to pay a dividend of$1 per share in 3-month and in 9-month....
A stock is expected to pay a dividend of$1 per share in 3-month
and in 9-month. The stock price is$80. An investor has just taken a
long position in a 12-month futures contract on the stock. The zero
ratesfor 3-, 6-, 9-, 12-month are 5%, 5.5%, 6% and 6.5% per annum
with continuous compounding, respectively.6-month later, the stock
price is$82. The zero rates happen to be the implied forward rates
6-month ago.What is the value of the long position in...
A friend, Ms. Michelle, was renting a house for $1,000 per month, but recently purchased a...
A friend, Ms. Michelle, was renting a house for $1,000 per
month, but recently purchased a comparable home for $200,000 plus
1% for various fees, inspections, etc. Ms. Michelle’s opportunity
cost of capital is 6% per year and she will have to pay a 5%
commission when she sells the house. Assuming that she has to move
and sell the house in one year, how much the house appreciate in
value for her to be better off than renting?
A friend, Ms. Michelle, was renting a house for $1,000 per month, but recently purchased a...
A friend, Ms. Michelle, was renting a house for $1,000 per
month, but recently purchased a
comparable home for $200,000 plus 1% for various fees,
inspections, etc. Ms. Michelle’s opportunity cost of capital is 6%
per year and she will have to pay a 5% commission when she sells
the house. Assuming that she has to move and sell the house in one
year, how much the house appreciate in value for her to be better
off than renting?
A large university claims that the average cost of housing within 5 miles of the campus...
A large university claims that the average cost of housing
within 5 miles of the campus is $8900 per scholl year. A high
shcool student is preparing her budget for her freshman year at the
university. She is concerned that the university's esimate is too
low. She obtained a random sample of 81 records and computes the
average cost is $9050. Based on earlier data, the population stand
deviation is $760. Use a=0.01 level of significance.
Step 1. State the...
It seems to becoming more common for students to live in off campus housing than to...
It seems to becoming more common for students to live in off
campus housing than to pay to live on campus. A study at a large
state university revealed that in a random sample of 50 seniors
last year, 56% lived in off campus housing whereas this year, a
random sample of 50 seniors showed that 64% lived in off campus
housing.
(a) Is this convincing evidence that the true proportion of all
seniors that are living in off campus...
A group of 400 students that lived in on-campus housing were surveyed and asked if (1)...
A group of 400 students that lived in on-campus housing were
surveyed and asked if (1) they had access to a car and (2) whether
they owned a television. Suppose that a person collecting the data
likes puzzles and she has given you the following information about
the results of the poll. One hundred thirty of the students
responded that they had access to a car, 240 students did not own a
television, and 150 students both did not have...
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