Question
Buy price of House: 205,000 Based on the house you selected for purchase in Question 2, determine the opportunity costs, of using required funds for
Buy price of House: 205,000
Based on the house you selected for purchase in Question 2, determine the opportunity costs, of using required funds for closing (i.e., down payment plus all closing costs), rather than investing the funds and earning an effective rate of 6.0% yearly. The down payment amount will be 20% of the purchase price of the house you selected. For estimation purposes, closing costs will be $3,000.00.
Calculate the amount of forgone interest on investment
a. Two years
b. Three years
c. Six years
d. Eight years
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