Retrieve the Excel spreadsheet. Review the base-case calculations of the own-versus-rent decision. Note that with the base-case assumptions and an expected 1-year holding period, renting is preferred to owning by $21,898 (cell B63); that is, the net present value of the cost of renting is $21,898 less than the net present value of the cost of owning. With a 5-year expected holding/analysis period, owning is preferred to renting by $2,303.

1. What is the assumed annual interest rate on the fixed-rate mortgage loan? What is the monthly payment on the mortgage (cell F18)?

One COM.CO LOV DETTE 37 MES RE M AL! One COM.CO LOV DETTE 37 MES RE M AL