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12.13 A young married couple has carefully looked at their budget. After review, they can afford a monthly mortgage payment of $1,059.00. They go to
12.13
A young married couple has carefully looked at their budget. After review, they can afford a monthly mortgage payment of $1,059.00. They go to their local banker and she offers them a mortgage of 5.28% APR with monthly compounding with a term of 30 years. The couple has enough savings to pay 20% down, so the mortgage will be 80% of the home's value. With this mortgage and a 20% down payment, what priced house can the couple afford? Submit Answer format: Currency: Round to: 2 decimal places. An investor is considering the following opportunity: He will put capital into a start-up company today. He will not receive any cash flows from the investment until end of the 5th year. At that point, he will receive 11.00 years of $9,100.00 per year. If his discount rate on this investment is 20.00%, what is the value of this opportunity today? Submit Answer format: Currency: Round to: 2 decimal placesStep by Step Solution
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