Question
Using your opportunity cost, determine the present value of your mortgage payments.The cost of the house is $430,000. In addition, it states to evaluate the
Using your opportunity cost, determine the present value of your mortgage payments.The cost of the house is $430,000. In addition, it states to evaluate the house you need a discount rate.As you consider the house as an investment, theaverage rate of return earned on your investments and use that as your discount rate.If you don't really have a lot of investments then estimate the rate that you would earn if you had investments.
Rate: 3.312%
Monthly:3034for 15 years
Opportunity cost: ?
Present value: ?
What is the present value based off of this information?
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