1. Consider each of the following case studies. For each scenario, use the Internet to research appropriate accommodations. Include a detailed estimate of the total monthly expenses related to the accommodation selected.
3. Case Study 1
5. Kevin has recently graduated from a college program in Computer Engineering Technology and has accepted a job with a computer networking company in Kitchener, Ontario. Kevin would like to rent a one-bedroom apartment. He can afford to spend between $750 and $1000 per month for rent, plus utilities. He doesn't smoke or have any pets, but does require parking.
7. Find three appropriate accommodations for Kevin. Give a brief description of each. For each option, estimate Kevin's total monthly expenditures for his accommodations. Select one of the three accommodations that you think is best for Kevin, and give reasons for your choice. Also, describe why renting may be the best option for Kevin.
9. Case Study 2
11. Pratima and her husband Chad are considering purchasing a house in Belleville, Ontario. Pratima works as a Certified General Accountant, while Chad is an estimator for a construction contracting company. They have a three-year old son, and are expecting a second child within a few months. They are looking for a resale house in a residential area, preferably close to a school. They have budgeted to spend $200 000 - $350 000 on a home. With their savings, they have enough for a $40 000 down payment plus all closing costs.
13. Find three appropriate houses that satisfy their requirements. Give a brief description of each. For each option, estimate the total monthly expenditures for accommodations, including mortgage payments (use an interest rate of 7% /a, amortized over 25 years), taxes, utilities, and insurance. Select one of the three accommodations that you think is best for Pratima and Chad, and give reasons for your choice. Also, describe why renting would not be a wise option for this family.

case 3

1. Laurie has been renting an apartment for a few years and is considering buying a house. Her gross annual income is $48 000. Laurie finds a house she likes, with a cost of $145 000. She has saved up enough money to cover the closing costs plus an additional $25 000 for a down-payment.

1. a) Laurie's down payment is less than 25% of the purchase price, therefore she must pay mortgage insurance. A premium of 1.75% of her mortgage amount is added to the principal. Determine the total mortgage Laurie requires.
3. b) The mortgage is amortized over 25 years, with an interest rate of 7.25% /a, compounded semi-annually. Use the TVM Solver to determine Laurie's monthly mortgage payments.

1. c) The annual taxes on the house are 1.35% of its value. Determine the amount of taxes Laurie must pay monthly.

1. d) The previous owner of the house calculated that the annual heating expenses were $1200. Laurie still has a monthly student loan of $150 and a monthly car payment of $400. Determine Laurie's Gross Debt Service and Total Debt Service ratios. Based on these values, comment on the affordability of this house.