Question
1. What is the required monthly mortgage payment 2. What are the initial cash outflows of the buy decision 3. What is the present value
1. What is the required monthly mortgage payment
2. What are the initial cash outflows of the buy decision
3. What is the present value of all cash outflows of the buy decision from month 0 to month 120?
4. Compare the relevant monthly cash outflow of the buy decision and rent decision from month 0 to month 3, assuming rent stays constant. What are the additional payments required to buy versus rent?
5. What is the principal outstanding on the mortgage at the end of 10 years ?
6. Compute the net gain or loss of the buy versus rent decision after 10 years under the four scenarios
7. What are some qualitative considerations
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