what would be the answer if part a was as follows:

Home Price$-$$$529,000[1]$

Minimum down payment required by the loan provider.$-20\%[2]$

Down payment amount$-$$$105,800$

Loan amount$-$$$423,200$

Closing cost$-$$$8,464[3]$

Loan interest rate$-5\mathrm{.}09\%$ compounded monthly $[4]$

Length of loan term$-10$ years $[4]$

Property taxes$-$$$5290$ per year $[5]$

Homeowners Insurance$-$$$780$ per year $[6]$

Mortgage Insurance$-0($Down payment of $20\%)$

The home considered for this case study is a home listed in Bay South at a price of $$529,000[1].$ This is a reasonably priced home with three bedrooms and three baths and is an excellent example of a home for a first$-$time homeowner $[1].$ The minimum down payment of this home was estimated as a percentage. On average, the normal down payment of a home is twenty percent of the purchase price in Newfoundland; therefore, this was the down payment percentage used $[2].$ Calculation of the down payment amount was done by simply multiplying the down payment percentage by the home price giving a value of $$105,800.$ The loan amount for this home is $\%423,200$ and was calculated by subtracting the down payment amount from the home price $.$

The next step was to find the closing cost of the purchase of the home. Research shows that the closing costs of a home in Newfoundland is approximately two percent of the loan amount $[3].$ This gave the closing costs of $$8,464.$ In Newfoundland for the year $2024,$ a $10$ year fixed interest rate of $5\mathrm{.}09\%$ compounded monthly with an amortization period of $25$ years is common $[4].$ Therefore this was the rate and term used for this case study. For a rural community such as that of Conception Bay South, property taxes per year are approximately $1\%$ of the home purchase price $[5].$ Therefore the cost of property tax for this home can be found by multiplying the purchase price by $1\%,$ making a yearly property tax payment of $$52290.$ An approximation of homeowners insurance in Newfoundland is $$780$ per year $[6].$ If a homeowner makes a down payment of at least $20\%$ of the home purchase price, they do not need to pay mortgage insurance therefore in this case mortgage insurance will not be considered $[$NEED A SOURCE FOR THIS$]..$

On the date of purchase of the home, the homeowner needs to make a payment. The amount of money needed on day of purchase $($MDP$),$ can be found by adding the down payment amount and the closing costs. In this instance this returned a MDP value of $$114,264$ to be payed on the purchase day. Another important cost associated with purchasing a home is the monthly payment $($MP$).$ This MP is a sum of the monthly Property tax, monthly homeowners insurance, and monthly loan payment. Monthly property tax and homeowners insurance was found by dividing the yearly rates by $12,$ returning payments of $$440\mathrm{.}83$ and $$65$ respectively. The monthly loan payment was found by multiplying the loan amount by the capital recovery factor $($A$/$P$,$ i$,$ N$).$ Finding the monthly interest rate to be $0\mathrm{.}42\%$ and number of payments to be $300,$ the Monthly loan payment was found to be $$2,483\mathrm{.}68.$ Summing these monthly payments together gave a MP of $$2,989\mathrm{.}68$ to own this home.

Considering the above question and answer, what would be the answer to the following part B$?$

the question and template for the answer is below. Take the above part a as reference and use it to answer part B:

Part b$)$ Deciding to buy or rent

Your task is to Determine if it would be economically better for you to buy a home or rent an apartment.

Content:

Imagine you have decided to stay at the university six more years to do a master$$s degree and then a PhD$.($Don$$t worry this is fictitious; and besides, on the happy side, we will also imagine you can afford to buy a house $).$ The question is whether it would be economically better to buy a home and sell it in six years or is it better to just rent an apartment. To work out this problem you will need to make a few assumptions$3.$You may

choose to include other items, such as utilities, parking fees, association fees, etc. You might even want to think of a dollar value to put on a few non$-$monetary costs and benefits $($see question $4$ below$).$

Use Future Worth Analysis to compare the two alternatives.

Choose your MARR. Assume your MARR is adjusted for inflation.

Show your estimates for all the items in Table $2.$ In your report, include sources and assumptions.

Also, answer these questions:

$1.$ Based only on future worth analysis, which alternative should you choose?

$2.$ How do you think the calculated FW would change if you only lived there for $2$ yrs$?$ What about $25$

yrs$?$

$3.$ Your annual house payment is probably more than your annual rent; so$,$ when we conduct an

economic analysis like this, what are we assuming about your $$extra$$ money each month if you rent?

$4.$ What are some of the risks involved with each alternative?

Please find:

Down payment and buying closing costs,House payments,Routine repair and maintenance,Tax Break, Equity, appreciation, selling costs, deposit, rent, and annual percentage increase change in annual rent?