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A family currently live in an apartment whose monthly rentis S1050. They are thinking of those wc WCOM well it at the end of the Sth year. They would put a downpayment of $25.000 and finance the balance through a morte interest. The mortgage is to be reading anualitaments which include both princil and interest) at the end of each year for the next 5 years The house will have the following ditional expenses al maintenance S1500, Property S5500, Insurance $1200. Arome they are in tax detor 2016 dhe price of home, and expenditure increases y 2 per year. Their opportunity cost of required rate of retum is 3% per year. Note that property taxes we dodate the sot payable capital composing for amortization schedule of mortes Calculate the total cost of owning in year 3 58687 $8817 O5328 58222 Question 19 5 points A family currently live in an apartment whose monthly rent in S1050 They are thinking of buying a house which would cost $250,000. They plan to live in this house for 3 years and well it at the end of the 5th year. They would put a downpayment of $25,000 and finance the balance through a mortgage at 3% interest rate. The mortgage is to be repaid in 5 annual instaliments (which include both principal and interest) at the end of each year for the next 5 years The house will have the following additional expenses annual maintenance: 51500, Property taxes:55300, Insurance $1200. Assume they are in tax bracket of 20% and the price of home, rent and expenditure increases by 2% per year. Their opportunity cost of required rate of retumis per year. Note that property taxes are tax deductible and there no tak payable on capital gains. Use annual compounding for amortization schedule of mortgage Calculate the total cost of owning in year 3 58687 58817 O 58325 58222

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