First evaluate the cost of $500,000 worth house in KC, in the destination city, then use the $150,000 cash as %20 down payment, then finance the %80 by borrowing a fixed 30 years loan of 4.8% interest.
Evaluate the annual cost of paying the loan:
Payback of a fixed loan, to be paid back in n years, is done by charging the borrower a compound interest rate.(1)
Payback of borrwed $P in n years at fixed rate of ( r) is evaluated by following Formula: $P(1 + r)^n
destination is Amsterdam,NY cost of housing index is 91 and KC, MO is 90.8
This what I have so far
91 / 90.8 * $500,000 = $501,101
$501,101 * 0.20 = $100,220.2
$100,220.2*(1 + 4.8%)^30
I have to do what in the parentheses first and I get 174. What am I doing wrong?
Evaluate the annual cost of paying the loan:
Payback of a fixed loan, to be paid back in n years, is done by charging the borrower a compound interest rate.(1)
Payback of borrwed $P in n years at fixed rate of ( r) is evaluated by following Formula: $P(1 + r)^n
destination is Amsterdam,NY cost of housing index is 91 and KC, MO is 90.8
This what I have so far
91 / 90.8 * $500,000 = $501,101
$501,101 * 0.20 = $100,220.2
$100,220.2*(1 + 4.8%)^30
I have to do what in the parentheses first and I get 174. What am I doing wrong?