Question
In: Finance
You bought your house for $100,000 ten years ago. Home values in your neighborhood have increased...
You bought your house for $100,000 ten years ago. Home values in your neighborhood have increased about 4% a year. Which table would you use to determine the value of your house today?
Solutions
Expert Solution
Ans We would use Future Value table to determine the current value of the house. Alternatively, we can calculate the value of the house as follows:
| FV = | Future Value |
| PV = | Present Value |
| r = | rate of interest |
| n= | no of period |
| FV = | PV (1 + r )^n |
| FV = | 100000*(1+ 4%)^10 |
| FV = | 148024.43 |
jeff jeffy answered 2 years agoRelated Solutions
1. You bought your house 5 years ago, and your original home value when you bought...
1. You bought your house 5 years ago,
and your original home value when you bought it was $450,000, you
paid 20% down and you financed closing costs equal to 4% of the
mortgage amount. The mortgage was a 30-year fixed rate mortgage
with a 6.5% annual interest rate. Rates on 30-year mortgages are
now at 5% if you pay 2 points upfront. Your refinancing costs will
be 2% of the new mortgage amount (excluding points). You won't
finance the...
You bought your house for $350,000 ten years ago and now it needs repairs (you pay...
You bought your house for $350,000 ten years ago and now it
needs repairs (you pay property taxes of $3,000 per year). You
consult a renovations company and it quotes you $40,000 to fix
everything. You are thinking about simply selling your house (no
repairs) for $425,000 and buying a bigger one for $610,000
(property taxes of $3,200 a year). You would be paying $1,100 a
month in interest to the bank, but also collecting $800 rent from a
tenant....
You bought your house for $350,000 ten years ago and now it needs repairs (you pay...
You bought your house for $350,000 ten years ago and now it
needs repairs (you pay property taxes of $3,000 per year). You
consult a renovations company and it quotes you $40,000 to fix
everything. You are thinking about simply selling your house (no
repairs) for $425,000 and buying a bigger one for $610,000
(property taxes of $3,200 a year). You would be paying $1,100 a
month in interest to the bank, but also collecting $800 rent from a
tenant....
You bought your house five years ago and you believe you will be in the house...
You bought your house five years ago and you believe you will be
in the house only about five more years before it gets too small
for your family. Your original home value when you bought it was
$500,000, you paid 10 percent down, and you financed closing costs
equal to 3 percent of the mortgage amount. The mortgage was a
25-year fixed- rate mortgage with a 5 percent annual interest rate.
Rates on 30-year mortgages are now at 3...
When you bought your house for $300,000 5 years ago you took out a $250,000 mortgage...
When you bought your house for $300,000 5 years ago you took out
a $250,000 mortgage with a 30 year ARM at 5%. Today is the five
year anniversary and the rate adjusts to 10%. What is your new
mortgage payment?
Two years ago, you purchase a house of $100,000. You borrow a mortgage with 80% of...
Two years ago, you purchase a house of $100,000. You borrow a
mortgage with 80% of LTV (loan to value ratio). The annual interest
rate on the mortgage is 6%. Payments are being made
monthly, and the loan tem is 30 years. You have found
another lender who will refinance only the current
outstanding loan balance at 4.5% with monthly payments for
30 years. The new lender will charge three discount points and the
refinancing cost is equal to $3,000....
Three years ago, you bought a house. You took out a $350,000.00 mortgage at 4.75% for...
Three years ago, you bought a house. You took out a $350,000.00
mortgage at 4.75% for 30 years. Now that interest rates have fallen
(beginning of year 4 of your current mortgage), you are considering
refinancing your existing loan with a new 30 year loan. Your new
loan must pay off the remaining balance of your old loan plus pay
for all of the fees, associated with the new loan. In addition to
all of the standard fees, you choose...
You bought a house two years ago and the hot water heater just died. You are...
You bought a house two years ago and the hot water heater just
died. You are considering replacing it with an updated version of
the same model, which would cost you $200 including installation.
Your family consumes about 110 gal of hot water daily, which costs
you $230 in utilities each year. The new tank comes with a 20-year
guarantee, and at the end of that time, you assume it would be
discarded and a new version installed, so zero...
You bought a house 8 years ago with a $250,000 mortgage. It was a 15 year loan with
You bought a house 8 years ago with a $250,000 mortgage. It was a 15 year loan with monthly payments which will pay off the loan when you make the last payment. The interest rate was 6%. What are your monthly payment and your current loan balance? How much interest will you pay in the upcoming year?
A few years ago, you got married and bought a house with an adjustable rate mortgage...
A few years ago, you got married and bought a house with an
adjustable rate mortgage with the
following terms:
Loan: $240,000
Term: 20 years
Initial Rate: 4%
Margin: 2% over the Index Rate
Lifetime Max: 4.5%
The index rate was 2% in year 1, 1.5% in year 2, 4% in year 3,
1% in year 4, and 1% in year 5.
a) What is your loan balance at year 5? (5pts)
b) What is the effective interest rate is...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Topic - Construction: Structural, loads, tension 1.) Explain why pure tension members are the most efficient...
- Procter and Gamble (PG) paid an annual dividend of $ 1.62$1.62 in 2009. You expect PG...
- locate a recent case of online child pornography. Write a summary of the incident and describe...
- #Python 5. Write function called evaluate() that evaluates the following Python expressions or assignments as specified:...
- Suggest journal, research paper link reference. i need this as reference for writing a research with...
- Cryptography is used heavily in internet communications. True or false? Explain
- Suppose Rialto is the only movie cinema in a small college town, so it is essentially...
ADVERTISEMENT