original price 236100

Suppose that after living in the house for 10 years you decide to sell it. The econamy experiences ups and downs, but in general the value of real estate increases over time. Recall the original purchase price fyou can click buck to Question I if you need to). Original purchase price (from Qucntion 1) =$ To approximate the future value of an investment such as real estate, you will use the compounded interest formila: PN=P0(1+kr)Ni This as juat an approximation, so well use an annual compoundins period (so, k=1. Find the future value of the home 10 years after you purchased it sssuming a 4 in thierest rate Use: the full purchase price of the home from the previous problem (Questicn 1) as the principal for intial value, P0 in the compound interest formuls. Future value of home =$ This "Fulure walue" is the price you will sell the house for alter youve owmed it for ten years. Now you will anaver the question of whether or not you have made or lost money with this investment. You will need several pleces of information in order to answer the question, You will need the anount of your down payment ofrom Question 12, the amount you pald toward the mortsage over ten years Gour monthly peyment from Question 1 times the number of poymeritsh and finally, the amount of princlpal you sill owe on the morteage. Dowa payment $ Mortgage paid over 10 yeafs =$ To find the principal balance on the morteage yoo will use the toan formuls. P0=(ht)d(1(1+kk)ND) (See your text in the finance module foc heip, in ths tormuls, d a tie monttoy fayment and r is the annial interest raie mpresed as a decenal from Parta1,sor=r=N is the rumber of years nemaning on the loan, and, of course, k=12. To detarmin whethes or not yourve made or bit monoy yourmut carnpare the rexpensel robow. Find the tutal "mopenses? Bxpexase = 1 After 10 yrars, did you lose or gain mency from heting the houseri Answer: How much (did you fore or gains Answerst