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lo a participation if you aren't coming to class) Due September 30th Pretend you inherited $150,000 are trying to decide between buying a home outright
lo a participation if you aren't coming to class) Due September 30th Pretend you inherited $150,000 are trying to decide between buying a home outright (cash) with the money or investing it in the stock market earning an 8% return and renting a place for the next 20 years for $800 a month. Assume the house increase in value at 5% a year. Show your work and let me know which you would prefer. To start, keep this problem easier by assume there are no taxes, insurance, or other expenses. Next, look at what property taxes, insurance, and other expenses (HOA fee/maintenance) might be in an area you'd like to live after college and see how this effects your answer. Some concepts you should use are future value and future value of an annuity. Maybe other depending on how you solve the problem. I'm as much if not more interested in your approach as I am your final
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