Week 7 Discussion

Topics: Tax, Time, Real estate Pages: 2 (262 words) Published: February 10, 2013
1.
A) FIRST MUST GET THE PRESENT VALUE(PV) - PLUG IN THE (PV) TO “FV= pv * [1 + (1+rm(mt))]” PV=p * [1-(1+ rm-mt)](rm) FV=pv*[1-(1+rMmt)]

PV=200*[1-(1+.0512-12*30)](.0512) FV= 37256.32 * [1+.0512(12*30)]

PV=200*[1-(1+.004166666-360)].004166666 FV= 37256.32 * 4.467744314
PV=155.2346702.004166666 FV= 166451.71
PV= 37256.32 TOTAL MONEY= $ 166451.71

B) what formula would I use for this?

C) the total interest earned over a period of 30 years is $175.12

D) I do not get this part of the question

2.
PV=2000*[1-(1+.3512-12*20 )] .3512 = PV=2000*[1-1+.029166666-240].029166666 = PV=1997.984145.029166666 =
PV= 68,502.31512

3.

PV=1000000*[ 1-(1+.0812-12*40) ].0812

PV=1000000*[ 1- 1+ .006666666-480)].006666666

PV=958802.6154.006666666

PV= 143,820,406.7

4.
R= Pi1-1+i-n = R=60000.65121-(1+.6512)- 12*20 = R=32501-.000003175 = R=3250.999996825 =

R=3250.010319

5.
You wish to purchase a house for $200,000 with 20% down. You will have it financed over 30 years at a rate of 8%. In addition, your yearly real estate tax is $4,800 while your monthly insurance payment on the home will be $30. What is your monthly mortgage payment? How much does your house cost per month including principal, interest, real estate taxes, and insurance?

- I have no clue how to start this problem, can you help me start it please.
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