Part 1: Renting vs Buying. Ten years ago, twin brothers Ryan and Bryan inherited $100,000 each. They were talking about their different investments at the time, and how they were going to invest new money. Ryan, a newly wed at that time, has decided to buy a house for the family. Bryan has decided to rent a house and invest money into stocks or bonds. Ten years later they were discussing whose decision was more profitable. Use the data given below to answer this question. Show your detailed calculations. Round all answers to the nearest cent unless another rounding is required. 2. Bryan's investment. Bryan has decided to invest his $100,000 into stock market at 7.5% interest rate (on average) compounded monthly*. In addition, he was making regular payments of $100 twice a month into saving account at 2.75% interest rate. Ten years later, he decided to close both accounts and reinvest the money into a new fast-growing company. He had just learned about this business and was adamant that the return could be exponential. For the last ten years, Bryan was renting a house paying $1750 monthly. "Calculations of the investments into stock market are mor complicated than in this example. Show your detailed calculations. Round all answers to the nearest cent unless another rounding is required. a. What is the value of Bryan's inheritance 10 years after the investment into the stock market? Show your work The formula: Calculations: b. How much money did his saving account accumulate in 10 years? Show your work. The formula: Calculations: c. How much did he spend on renting over 10 years? Show your work. 3. In your opinion, whose investment ya"s or Bryans was more profitable in ten years? Explain your reasoning with numbers. Some other factors not calculated in this project can be taken into consideration. Show your work. Part 1: Renting vs Buying Ten years ago, twin brothers Ryan and Bryan inherited $100,000 each. They were talking about their different investments at the time, and how they were going to invest new money. Ryan, a newly wed at that time, has decided to buy a house for the family. Bryan has decided to rent a house and invest money into stocks or bonds. Ten years later they were discussing whose decision was more profitable. Use the data given below to answer this question. Show your detailed calculations. Round all answers to the nearest cent unless another rounding is required. 1. Ryan's investment. Ryan bought a house for $350,000 paying 20% down and financing the rest of the value at 3.25% interest for 30 years. He used the inherited money for the down-payment and remaining $30,000 for the remodeling. Ten years later, Ryan has got a new job offer, sold the house for $475,000 and moved to another city. a. How much money did Ryan pay for his down payment? Show your work. Down payment - Cost * downpayment rate - 350,000 x 20% - 70,000 b. How much did he finance? Show your work. Finance = cost-downpayment = 350,000 - 40,000 = 280,000 c. What was his monthly payment? Show your work. The formula: Px (4-(1+r)^n/v) p Calculations: 220,000 = Px (4-(4+0.2708%)-360/0.2723%) d. What is the remaining balance of the original loan after 10 years of payments? Show your work. The formula: Px (1-(1+r)^-n/-) Calculations: Loan balance - 1213.50 x (4-(4+0.2708 %)-210/0.24087) Tolal amount paid = (Number of months x Payment per month) + Down payment c. How much money has Ryan paid to the loan company over 10 years? Show your work. Hint: think about monthly payments and the down payment. + = (-120 * 1218.50) + 70000 = f. How much of the loan's principle amount has Ryan paid off? fi.e. how much has he reduced the loan balance by?) Keep in mind that interest is charged each month - it's not part of the loan balance. Show your work. Principle paid = loan amount balance loan - 280,000 - 244,842.52 - $ 65,157.48 2 Part 1: Renting vs Buying. Ten years ago, twin brothers Ryan and Bryan inherited $100,000 each. They were talking about their different investments at the time, and how they were going to invest new money. Ryan, a newly wed at that time, has decided to buy a house for the family. Bryan has decided to rent a house and invest money into stocks or bonds. Ten years later they were discussing whose decision was more profitable. Use the data given below to answer this question. Show your detailed calculations. Round all answers to the nearest cent unless another rounding is required. 2. Bryan's investment. Bryan has decided to invest his $100,000 into stock market at 7.5% interest rate (on average) compounded monthly*. In addition, he was making regular payments of $100 twice a month into saving account at 2.75% interest rate. Ten years later, he decided to close both accounts and reinvest the money into a new fast-growing company. He had just learned about this business and was adamant that the return could be exponential. For the last ten years, Bryan was renting a house paying $1750 monthly. "Calculations of the investments into stock market are mor complicated than in this example. Show your detailed calculations. Round all answers to the nearest cent unless another rounding is required. a. What is the value of Bryan's inheritance 10 years after the investment into the stock market? Show your work The formula: Calculations: b. How much money did his saving account accumulate in 10 years? Show your work. The formula: Calculations: c. How much did he spend on renting over 10 years? Show your work. 3. In your opinion, whose investment ya"s or Bryans was more profitable in ten years? Explain your reasoning with numbers. Some other factors not calculated in this project can be taken into consideration. Show your work. Part 1: Renting vs Buying Ten years ago, twin brothers Ryan and Bryan inherited $100,000 each. They were talking about their different investments at the time, and how they were going to invest new money. Ryan, a newly wed at that time, has decided to buy a house for the family. Bryan has decided to rent a house and invest money into stocks or bonds. Ten years later they were discussing whose decision was more profitable. Use the data given below to answer this question. Show your detailed calculations. Round all answers to the nearest cent unless another rounding is required. 1. Ryan's investment. Ryan bought a house for $350,000 paying 20% down and financing the rest of the value at 3.25% interest for 30 years. He used the inherited money for the down-payment and remaining $30,000 for the remodeling. Ten years later, Ryan has got a new job offer, sold the house for $475,000 and moved to another city. a. How much money did Ryan pay for his down payment? Show your work. Down payment - Cost * downpayment rate - 350,000 x 20% - 70,000 b. How much did he finance? Show your work. Finance = cost-downpayment = 350,000 - 40,000 = 280,000 c. What was his monthly payment? Show your work. The formula: Px (4-(1+r)^n/v) p Calculations: 220,000 = Px (4-(4+0.2708%)-360/0.2723%) d. What is the remaining balance of the original loan after 10 years of payments? Show your work. The formula: Px (1-(1+r)^-n/-) Calculations: Loan balance - 1213.50 x (4-(4+0.2708 %)-210/0.24087) Tolal amount paid = (Number of months x Payment per month) + Down payment c. How much money has Ryan paid to the loan company over 10 years? Show your work. Hint: think about monthly payments and the down payment. + = (-120 * 1218.50) + 70000 = f. How much of the loan's principle amount has Ryan paid off? fi.e. how much has he reduced the loan balance by?) Keep in mind that interest is charged each month - it's not part of the loan balance. Show your work. Principle paid = loan amount balance loan - 280,000 - 244,842.52 - $ 65,157.48 2