Question
You are buying a house and have both the option and the ability to pay $210,000 cash for it. If you dont pay cash, you
You are buying a house and have both the option and the ability to pay $210,000 cash for it. If you dont pay cash, you will have to pay $240,000 and take out a loan for the full amount with a 30 year term, 6.5% interest rate and monthly payments of $1,516.96. You also believe that you can invest the amount that you would pay in cash for the house in the stock market and receive an annual interest rate of 8% compounded monthly. The present value of the mortgage payments is _________ and you _________ pay for the house in cash given youre assumptions.
$206,737; shouldnt
$206,737; should
$240,000; shouldnt
$240,000; should
None of the above
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