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Lucinda Lacy purchased a house today for $110,000 by making a down payment of $15,000 and paying closing costs of: . Loan origination fee Appraisal
Lucinda Lacy purchased a house today for $110,000 by making a down payment of $15,000 and paying closing costs of: . Loan origination fee Appraisal fee Survey fee Attorney fee Processing fee Escrow fee Other misc. costs 1.2% of purchase price $350 300 400 450 300 750 Lucinda has a 15-year loan with an interest rate of 6.5% APR, compounded monthly. Her taxes and insurance are $392 per month. Lucinda has an estimate for a $16,000 firm, fixed price contract to remodel the house and this expense will be equally distributed over the period of her ownership. After remodeling, she estimates that she could sell the house for $150,000. Her selling expenses would be 6.5% sales commission plus $1,500. Excel Assignment 2. Prepare an Excel Amortization chart that shows the first six months payments. (4 points) 3. Prepare an EXCEL spreadsheet to determine Lucinda's rate of return if she owns the house for 6 months. (4 points) 4. Use the Excel spreadsheet to determine the ROR if Lucinda keeps the house for 6 months and the selling price is actually $138,000 instead of $150,000. (2 points)
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