$2$

The accompanying Homeownership spreadsheet contains a partially completed spreadsheet model for computing the monthly costs of home ownership. Complete the spreadsheet model by inserting the formulas for monthly mortgage payment $($B$12),$ monthly property tax $($B$13),$ monthly homeowner insurance premium $($B$14),$ monthly maintenance costs $($B$15),$ and total $($B$16)$ in the appropriate cells.

Click here for the Excel Data File:

a$.$ Is this a deterministic or stochastic model?

Is this a deterministic or stochastic model?

deterministic

b$.$ Which of the following is NOT an input of the spreadsheet model?

Interest rate

Monthly mortgage payment

Number of years of the loan

Annual maintenance cost rate

c$.$ What is the monthly total of home ownership using the assumptions stated in the spreadsheet?

Note: Round your answer to $2$ decimal places.

Monthly total home ownership amount:

$2,731\mathrm{.}83$

b$.$ Which of the following is NOT an input of the spreadsheet model?

Interest rate

Monthly mortgage payment

Number of years of the loan

Annual maintenance cost rate

c$.$ What is the monthly total of home ownership using the assumptions stated in the spreadsheet?

Note: Round your answer to $2$ decimal places.

Monthly total home ownership amount:

$2,731\mathrm{.}83$

d$.$ How much does the monthly total of home ownership increase if the owner decides to get a $15-$year mortgage instead of a $30-$year mortgage?

Note: Round your answer to $2$ decimal places.

Increase amount: Variables:

$3$ House value:

$4$ Interest rate:

Down payment $(\%$ of house value$)$:

Number of years:

Property tax rate:

Annual homeowner insurance premium:

Maintenance cost rate $(\%$ of house value

$$,450,000\mathrm{.}00$

$4\mathrm{.}25\%$

$20\%$

$30$

$1\mathrm{.}25\%$

$1,400\mathrm{.}00$

$1\%$

Monthly Cost of Home Ownership

Monthly mortgage payment:

Monthly property tax:

Monthly homeower insurance premium:

Monthly maintenance costs:

Total: