網頁Question: Time Value of Money - Buy vs Rent Decision Rebecca Young recently graduated from Masters program and started working for a consulting company. She is faced with the decision of purchasing a new condominium for $250,000 or continuing to live in a rented condominium with a monthly rent of $1,250. Prevailing interest rates are 4%. 網頁Between renting or buying a home, the decision to live by renting is always easier tomake. That's because, no matter how tedious the leasing process is, it's still …

FNCE 623 - UCW - financial management - Studocu

網頁Time Value of Money: The Buy Versus Rent Decision Input: Asking Sales Price: $620,000 Final Sales Price: $600,000 Down Payment (20%): $120,000 Actual Mortgage: $480,000 Taxes due today: $18,000 Closing fees due today: $2,000 1) Monthly payment for mortgage: The number of payments that will occur can be calculated by: n = 25 years*12months = 300 網頁But the difference between the rent and mortgage payment is that rent is only liability, but the mortgage is also liability but in different way because as Young pay more the liability on her decreases, and share of her on the property … black rock subdivision

TIME VALUE OF MONEY: THE BUY VERSUS RENT …

網頁If Young purchased the new condominium she would pay monthly condo fees of $1.055 per month,plus property taxes of $300 per month on the unit.Unlike when rentingishe would also be responsible for repairs and general maintenance,which … 網頁with an asking price of the virtually identical unit next door became and Young believed she could purchase it for. $600,000. She realized she was facing the classic buy-versus … 網頁Considering the Buy Decision: = -$3,000 + $462.82 = -$2,537.18 Considering Rent Decision = -$2,524.90 -$1,050 -$300 -$50= = -$3,929.90 Thus, the monthly difference of the buy vs. rent is $1,392.72. Which is also the monthly additional payment to buy versus rent. I hope this could help you. Have a great day ahead! :) 4. blackrock student of the market 2022