An established engineer is considering buying a property to rent out as an investment. If the price

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An established engineer is considering buying a property to rent out as an investment. If the price of the house is $350,000 and she pays 10% of the house's value as a downpayment, and the mortgage terms are: 3.5% compounded semiannually, monthly payments, 20-year amortization period and a 4-year term

a) What are the monthly mortgage payments?

b) What percentage of the engineer's total mortgage payments went to cover interest over the term of the mortgage?

c) If the engineer wants to make 0.333 %/month (4 %/year nominally) on her total investment, what would the monthly rental payment be?

Related Book For answer-question

Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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Posted Date: Feb 17, 2023 10:44 PM

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An established engineer is considering buying a property to rent out as an investment. If the price

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a To calculate the monthly mortgage payments for the property we can use the formula for mortgage payment with monthly compounding P Lc1 cn1 cn 1 wher... View the full answer

Engineering Economic Analysis

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