Question: Your aunt and uncle are aware that you are taking a finance class and have come to you for advice. They are currently renting an apartment for $775 per month, but they are considering purchasing a house in the Cleveland, TN area. Their children are grown, which means they are not concerned with the school district or finding a certain number of bedrooms. Their credit history is clean, which means they should be approved for a loan; however, the amount they use for rent is the maximum amount they could spend on a monthly mortgage loan payment. They have approximately $15,000 in savings that could be used for a down payment. They are seeking your advice as to whether they should purchase a home, the approximate price range they should consider, the term of financing (number of years), and whether they should use all or some of their savings as a down payment. 15 or 30 Output Required: Please provide your aunt and uncle a memo answering their questions in layman" terms. The memo should not exceed 500 words, but students may use effective graphics (i.e. tables, graphs) to support their answers. Appropriate calculations may be necessary to support your position. Please check the rubric in Moodle for guidance on how the memo will be assessed. Due Date: This memo will be due the class period after Exam 2. It must be uploaded to Moodle and a hard copy brought to class. It is worth 20 points of the total 100 points on Exam 2. interest rate has to be entered as a decimal, not % on Excel Insert fuction (f) - Financial > Fu PV, h, i, PMT options on excel Question: Your aunt and uncle are aware that you are taking a finance class and have come to you for advice. They are currently renting an apartment for $775 per month, but they are considering purchasing a house in the Cleveland, TN area. Their children are grown, which means they are not concerned with the school district or finding a certain number of bedrooms. Their credit history is clean, which means they should be approved for a loan; however, the amount they use for rent is the maximum amount they could spend on a monthly mortgage loan payment. They have approximately $15,000 in savings that could be used for a down payment. They are seeking your advice as to whether they should purchase a home, the approximate price range they should consider, the term of financing (number of years), and whether they should use all or some of their savings as a down payment. 15 or 30 Output Required: Please provide your aunt and uncle a memo answering their questions in layman" terms. The memo should not exceed 500 words, but students may use effective graphics (i.e. tables, graphs) to support their answers. Appropriate calculations may be necessary to support your position. Please check the rubric in Moodle for guidance on how the memo will be assessed. Due Date: This memo will be due the class period after Exam 2. It must be uploaded to Moodle and a hard copy brought to class. It is worth 20 points of the total 100 points on Exam 2. interest rate has to be entered as a decimal, not % on Excel Insert fuction (f) - Financial > Fu PV, h, i, PMT options on excel
