USE EXCEL You work for a financial planner with a potential client named Sarah White. Sarah was about to buy a house for $155,000, and she planning to get a 30-year monthly mortgage with a 20% down payment (which she has in the bank) at 3.94% (including fees). Last week, though, she won the lottery! If she takes the lump sum payout, it will be $124,000 cash (after tax).

Everyone she knows has told her to use the lotto money to buy the house instead of financing, but she checked with your boss just in case. Your boss believes it may be better for her to get the mortgage and invest her lottery winnings in a managed investment account which is anticipated to earn about 6.5% per year after fees

1. Finance the house. Invest the lotto money and use it to pay the mortgage. In 30 years, she has . . . a house, and maybe some money