1.

If Jain opts to buy the apartment with a 20 years fixed interest rate loan.

1.1How much is the Down Payment?

1.2How much is the Loan Amount?

1.3What is the Monthly Interest Rate?

1.4What are the Beginning-of-Month Balance, Month-End Interest on Balance, Total Month-End Payment, Amortization of Loan, and End-of-Month Balance in the 10^th month?

Answer:

1.1

1.2

1.3

1.4

Month

Beginning-of-Month Balance

Month-End Interest on Balance

Total Month-End Payment

Amortization of Loan

End-of-Month Balance

10

2. If Jain opts to buy the apartment with a 20 years fixed interest rate loan.

2.1 What is the predicted apartment price 20 years later?

2.2 What is the Total Monthly Payments if buy?

Notes:

Stamp and Transfer Duty, Registration Fee, and Brokerage Charges are one-time payment. Property Tax, and Tax Benefit are annual payment.

2.3 What will be the Future Capital Gain 20 years later?

2.4 What is the Present Value the Future Capital Gain?

Answer

2.1

2.2

2.3

2.4

3.If Jain opts to rent the apartment.

What is the Total Monthly Payments if Rent?

Answer

4.

4.1 What is the Monthly Incremental Payment?

4.2 What is the Present Value of the 240 months Monthly Incremental Payments?

Answer

4.1

4.2

5.

If the Present value of the 240 months Monthly Incremental Payments < Present Value of the Capital Gain, Then Buy

If the Present value of the 240 months Monthly Incremental Payments > Present Value of the Capital Gain, Then Rent

Base on your analysis, as Jain, would you decide to buy or to rent?

Answer: