You are thinking of buying a house for $2 million. You will finance the house by putting $1 million down. The rest of the amount will be financed with two loans. One loan is a pure discount loan. You will pay the lender $1 million in exactly 7 yean. No payments will be made before that time. The other loan is an amortized loan with fined monthly payments for 30 years. Both loans carry 5% APR compounded monthly. How much will you borrow using the pure discount loan? $350, 700 $500, 400 $705, 200 $1, 050, 100 $1, 740, 600 What is the monthly payment on the amortized loan? $ 818.89 $1, 582.55 $3, 475.38 $5, 366.22 $19, 177.12 You would like to know if the house is worth $2 million dollars. You think you can rent out the house starting one year from now for $10,000/month until you sell it Every month the rent will go up by 0.15%. The discount rate is still 5% APR compounded monthly. There will be a total of 228 rental payments over 19 years and in 20 years from now the house will sell for $3 million. What is the present value of the payments that you stand to receive? Ignore taxes and the mortgage costs. $1, 628, 626 $2, 575, 921 $2, 734, 559 $2, 810, 779 $3, 126,009