Let's suppose that after living in the house for 10 years, you want to sell. The economy
Question:
Let's suppose that after living in the house for 10 years, you want to sell. The economy experiences ups and downs, but in general the value of real estate increases over time. To calculate the value of an investment such as real estate, we use continuously compounded interest.
Find the value of the home 10 years after purchase assuming a continuous interest rate of 4%. Use the full purchase price as the principal. Show your work.
Value of home 10 years after purchase: $410,102.61
Assuming that you can sell the house for this amount, use the following information to calculate your gains or losses:
Selling price of your house: $410,102.61
Original down payment: $54,980
Mortgage paid over the ten years: X
The principal balance on your loan after ten years: X
South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781337386173
21st Edition
Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney