please help me answer questions b,c?

PROJECT DESCRIPTION In August 2019, Kiley Blank completed her bachelor degree in engineering and moved to Dallas, Texas for a new job. There, she rented a spacious, two-bedroom condominium for $3,000 per month, which included parking but not utilities or cable television. In July 2020, the virtually identical unit next door became available for sale with an asking price of $620.000 and Kiley believed she could purchase it for $600,000. She realized that she was facing the classic buy-versus-rent decision. It was time for her to apply the analytical tools from engineer economy course she had acquired - including "time value of money concepts - to her personal life. While Kiley really liked the condominium unit she was renting, as well as the condominium building itself, she felt that it would be inadequate for her long-term needs, as she planned to move to a house or even to a larger penthouse condominium within five to 10 years - even sooner if her job continued to work out well. Friends and family had given Kiley a variety of mixed opinions concerning the buy-versus-rent debate, ranging from you're throwing your money away on rent to "it's better to keep things as cheap and flexible as possible until you are ready to settle in for good." She realized that both sides presented good arguments, but she wanted to analyze the buy-versus-rent decision from a quantitative point of view in order to provide some context for the qualitative considerations that would ultimately be a major part of her decision. FINANCIAL DETAILS If Kiley purchased the new condominium, she would pay condo fees of $1,055 per month, plus property taxes of $300 per month on the unit. Unlike when renting, she would also be responsible for repairs and general maintenance, which she estimated would average $600 per year. If she decided to purchase the new unit, Kiley intended to provide a cash down payment of 20% of the purchase price. There was also a local deed-transfer tax of approximately 1.5% of the purchase price, and a provincial deed-transfer tax of 1.5%, both due on the purchase date with the down payment. Other closing fees were estimated to be around $2,000. In order to finance the remaining 80% of the purchase price, Kiley contacted several lenders and found that she would be able to obtain a mortgage at a 6% "quoted" annual rate (nominal), and that she would amortize the mortgage over 30 years, with monthly payments. U.S. mortgages are based on monthly compounding The money that Kiley was planning to use for her down payment and closing costs was presently invested and was earning the same effective monthly rate of return as she would be paying on her mortgage. SCENARIO ANALYSIS In order to complete a financial analysis of the buy-versus-rent decision, Kiley, realized that her first task would be to determine the required monthly mortgage payments. Next, she wanted to determine the opportunity cost (on a monthly basis) of using the lump-sum required funds for the condominium purchase (down payment and closing costs) rather than leaving those funds invested and earning the effective monthly rate, assumed to be equivalent to the mortgage rate. She would then be able to determine additional monthly payments required to buy the condominium compared to renting, including the opportunity cost. Kiley wanted to consider what might happen if she chose to sell the condominium at a future date. She was confident that any re-sell would not happen for at least two years, but it could certainly happen in five or 10 years' time. She needed to model the amount of the outstanding principal at various points in the future - two, five or 10 years from now. She then wanted to determine the net future gain or loss after two, five and 10 years under the following scenarios, which she had determined were possible after some due diligence regarding future real-estate prices in the Dallas condo market: (a) The condo price remains unchanged: (b) The condo price drops 10% over the next two years, then increases back to its purchase price by the end of five years, then increases by a total of 10% from the original purchase price by the end of 10 years; and (c) The condo price increases annually by an annual rate of 5% per year over the next 10 years. CALCULATION TASKS 1. (10 points) Monthly Mortgage Payment on the house 2. (6 points) Annual opportunity cost for investing money during down payment (down payment, deed- transfer taxes, and closing cost) rather than buying the house 3. (84) Use future worth analysis to compare buy and rent options and fill out the following table with accept or reject decisions for buy and rent options at each case (9 cases available). Rent Buy Unchanged (a) With Changes (b) With Changes (0) 2-year 5-year 10-year PROJECT DESCRIPTION In August 2019, Kiley Blank completed her bachelor degree in engineering and moved to Dallas, Texas for a new job. There, she rented a spacious, two-bedroom condominium for $3,000 per month, which included parking but not utilities or cable television. In July 2020, the virtually identical unit next door became available for sale with an asking price of $620.000 and Kiley believed she could purchase it for $600,000. She realized that she was facing the classic buy-versus-rent decision. It was time for her to apply the analytical tools from engineer economy course she had acquired - including "time value of money concepts - to her personal life. While Kiley really liked the condominium unit she was renting, as well as the condominium building itself, she felt that it would be inadequate for her long-term needs, as she planned to move to a house or even to a larger penthouse condominium within five to 10 years - even sooner if her job continued to work out well. Friends and family had given Kiley a variety of mixed opinions concerning the buy-versus-rent debate, ranging from you're throwing your money away on rent to "it's better to keep things as cheap and flexible as possible until you are ready to settle in for good." She realized that both sides presented good arguments, but she wanted to analyze the buy-versus-rent decision from a quantitative point of view in order to provide some context for the qualitative considerations that would ultimately be a major part of her decision. FINANCIAL DETAILS If Kiley purchased the new condominium, she would pay condo fees of $1,055 per month, plus property taxes of $300 per month on the unit. Unlike when renting, she would also be responsible for repairs and general maintenance, which she estimated would average $600 per year. If she decided to purchase the new unit, Kiley intended to provide a cash down payment of 20% of the purchase price. There was also a local deed-transfer tax of approximately 1.5% of the purchase price, and a provincial deed-transfer tax of 1.5%, both due on the purchase date with the down payment. Other closing fees were estimated to be around $2,000. In order to finance the remaining 80% of the purchase price, Kiley contacted several lenders and found that she would be able to obtain a mortgage at a 6% "quoted" annual rate (nominal), and that she would amortize the mortgage over 30 years, with monthly payments. U.S. mortgages are based on monthly compounding The money that Kiley was planning to use for her down payment and closing costs was presently invested and was earning the same effective monthly rate of return as she would be paying on her mortgage. SCENARIO ANALYSIS In order to complete a financial analysis of the buy-versus-rent decision, Kiley, realized that her first task would be to determine the required monthly mortgage payments. Next, she wanted to determine the opportunity cost (on a monthly basis) of using the lump-sum required funds for the condominium purchase (down payment and closing costs) rather than leaving those funds invested and earning the effective monthly rate, assumed to be equivalent to the mortgage rate. She would then be able to determine additional monthly payments required to buy the condominium compared to renting, including the opportunity cost. Kiley wanted to consider what might happen if she chose to sell the condominium at a future date. She was confident that any re-sell would not happen for at least two years, but it could certainly happen in five or 10 years' time. She needed to model the amount of the outstanding principal at various points in the future - two, five or 10 years from now. She then wanted to determine the net future gain or loss after two, five and 10 years under the following scenarios, which she had determined were possible after some due diligence regarding future real-estate prices in the Dallas condo market: (a) The condo price remains unchanged: (b) The condo price drops 10% over the next two years, then increases back to its purchase price by the end of five years, then increases by a total of 10% from the original purchase price by the end of 10 years; and (c) The condo price increases annually by an annual rate of 5% per year over the next 10 years. CALCULATION TASKS 1. (10 points) Monthly Mortgage Payment on the house 2. (6 points) Annual opportunity cost for investing money during down payment (down payment, deed- transfer taxes, and closing cost) rather than buying the house 3. (84) Use future worth analysis to compare buy and rent options and fill out the following table with accept or reject decisions for buy and rent options at each case (9 cases available). Rent Buy Unchanged (a) With Changes (b) With Changes (0) 2-year 5-year 10-year