Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Nabil is considering buying a house while he is at university. The house costs $240,000 today. Renting out part of the house and living in
Nabil is considering buying a house while he is at university. The house costs $240,000 today. Renting out part of the house and living in the rest over his five years at school will net, after expenses, $3000 per month. He estimates that he will sell the house after five years for $250,000. If Nabil's MARR is 6 percent compounded monthly, should he buy the house? Use annual worth. Click the icon to view the table of compound interest factors for discrete compounding periods when i= 6% compounded monthly Nabil buy the house because the annual worth of the house is $ (Round to the nearest cent as needed.) Compound interest factors for discrete compounding, discrete cash flows (i=0.5%) Single Payment N 1 2 3 Compound Amount Factor (F/P,1,N) 1.0050 1.0100 1.0151 1.0202 1.0253 1.0304 1.0355 1.0407 1.0459 1.0511 1.0564 DO OUT WN Present Worth Factor (P/F,1,N) 0.99502 0.99007 0.98515 0.98025 0.97537 0.97052 0.96569 0.96089 0.95610 0.95135 0.94661 Sinking Fund Factor (A/F,i,N) 1.0000 0.49875 0.33167 0.24813 0.19801 0.16460 0.14073 0.12283 0.10891 0.09777 0.08866 Uniform Series Series Uniform Capital Present Series Recovery Worth Factor Factor Factor (FIA,1,N) (A/P,1,N) (P/A,1,N) 1.00000 1.0050 0.99502 2.0050 0.50375 1.9851 3.0150 0.33667 2.9702 4.0301 0.25313 3.9505 5.0503 0.20301 4.9259 6.0755 0.16960 5.8964 7.1059 0.14573 6.8621 8.1414 0.12783 7.8230 9.1821 0.11391 8.7791 10.228 0.10277 9.7304 11.279 0.09366 10.677 Arithmetic Gradient Series Factor (A/G,1,N) 0.00000 0.49875 0.99667 1.4938 1.9900 2.4855 2.9801 3.4738 3.9668 4.4589 4.9501 5 6 7 8 9 10 11 Print Done 12 13 14 15 16 17 18 19 1.0617 1.0670 1.0723 1.0777 1.0831 1.0885 1.0939 1.0994 1.1049 1.1104 1.1160 1.1216 1.1272 1.1328 1.1385 1.1442 1.1499 0.94191 0.93722 0.93256 0.92792 0.92330 0.91871 0.91414 0.90959 0.90506 0.90056 0.89608 0.89162 0.88719 0.88277 0.87838 0.87401 0.86966 0.08107 0.07464 0.06914 0.06436 0.06019 0.05651 0.05323 0.05030 0.04767 0.04528 0.04311 0.04113 0.03932 0.03765 0.03611 0.03469 0.03336 12.336 13.397 14.464 15.537 16.614 17.697 18.786 19.880 20.979 22.084 23.194 24.310 25.432 26.559 27.692 28.830 29.975 0.08607 0.07964 0.07414 0.06936 0.06519 0.06151 0.05823 0.05530 0.05267 0.05028 0.04811 0.04613 0.04432 0.04265 0.04111 0.03969 0.03836 11.619 12.556 13.489 14.417 15.340 16.259 17.173 18.082 18.987 19.888 20.784 21.676 22.563 23.446 24.324 25.198 26.068 5.4406 5.9302 6.4190 6.9069 7.3940 7.8803 8.3658 8.8504 9.3342 9.8172 10.299 10.781 11.261 11.741 12.220 12.698 13.175 21 22 23 24 27 28 29 30 31 32 33 34 35 40 45 50 55 60 65 70 75 80 85 1.1556 1.1614 1.1672 1.1730 1.1789 1.1848 1.1907 1.2208 1.2516 1.2832 1.3156 1.3489 1.3829 1.4178 1.4536 1.4903 1.5280 0.86533 0.86103 0.85675 0.85248 0.84824 0.84402 0.83982 0.81914 0.79896 0.77929 0.76009 0.74137 0.72311 0.70530 0.68793 0.67099 0.65446 0.03213 0.03098 0.02990 0.02889 0.02795 0.02706 0.02622 0.02265 0.01987 0.01765 0.01584 0.01433 0.01306 0.01197 0.01102 0.01020 0.00947 31.124 32.280 33.441 34.609 35.782 36.961 38.145 44.159 50.324 56.645 63.126 69.770 76.582 83.566 90.727 98.068 105.59 0.03713 0.03598 0.03490 0.03389 0.03295 0.03206 0.03122 0.02765 0.02487 0.02265 0.02084 0.01933 0.01806 0.01697 0.01602 0.01520 0.01447 26.933 27.794 28.651 29.503 30.352 31.196 32.035 36.172 40.207 44.143 47.981 51.726 55.377 58.939 62.414 65.802 69.108 13.651 14.126 14.601 15.075 15.548 16.020 16.492 18.836 21.159 23.462 25.745 28.006 30.247 32.468 34.668 36.847 39.006 29 30 31 32 33 34 35 40 45 50 55 60 65 70 75 80 85 1.1556 1.1614 1.1672 1.1730 1.1789 1.1848 1.1907 1.2208 1.2516 1.2832 1.3156 1.3489 1.3829 1.4178 1.4536 1.4903 1.5280 0.86533 0.86103 0.85675 0.85248 0.84824 0.84402 0.83982 0.81914 0.79896 0.77929 0.76009 0.74137 0.72311 0.70530 0.68793 0.67099 0.65446 0.03213 0.03098 0.02990 0.02889 0.02795 0.02706 0.02622 0.02265 0.01987 0.01765 0.01584 0.01433 0.01306 0.01197 0.01102 0.01020 0.00947 31.124 32.280 33.441 34.609 35.782 36.961 38.145 44.159 50.324 56.645 63.126 69.770 76.582 83.566 90.727 98.068 105.59 0.03713 0.03598 0.03490 0.03389 0.03295 0.03206 0.03122 0.02765 0.02487 0.02265 0.02084 0.01933 0.01806 0.01697 0.01602 0.01520 0.01447 26.933 27.794 28.651 29.503 30.352 31.196 32.035 36.172 40.207 44.143 47.981 51.726 55.377 58.939 62.414 65.802 69.108 13.651 14.126 14.601 15.075 15.548 16.020 16.492 18.836 21.159 23.462 25.745 28.006 30.247 32.468 34.668 36.847 39.006 32 33 34 35 40 45 50 55 60 65 70 75 80 85 90 95 100 1.1730 1.1789 1.1848 1.1907 1.2208 1.2516 1.2832 1.3156 1.3489 1.3829 1.4178 1.4536 1.4903 1.5280 1.5666 1.6061 1.6467 0.85248 0.84824 0.84402 0.83982 0.81914 0.79896 0.77929 0.76009 0.74137 0.72311 0.70530 0.68793 0.67099 0.65446 0.63834 0.62262 0.60729 0.02889 0.02795 0.02706 0.02622 0.02265 0.01987 0.01765 0.01584 0.01433 0.01306 0.01197 0.01102 0.01020 0.00947 0.00883 0.00825 0.00773 34.609 35.782 36.961 38.145 44.159 50.324 56.645 63.126 69.770 76.582 83.566 90.727 98.068 105.59 113.31 121.22 129.33 0.03389 0.03295 0.03206 0.03122 0.02765 0.02487 0.02265 0.02084 0.01933 0.01806 0.01697 0.01602 0.01520 0.01447 0.01383 0.01325 0.01273 29.503 30.352 31.196 32.035 36.172 40.207 44.143 47.981 51.726 55.377 58.939 62.414 65.802 69.108 72.331 75.476 78.543 15.075 15.548 16.020 16.492 18.836 21.159 23.462 25.745 28.006 30.247 32.468 34.668 36.847 39.006 41.145 43.263 45.361
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started