Question: Can I get help answer A) & B)? Thank you 6. [10 pts.] Suppose you bought a house worth $100,000 with a 10% downpayment and
Can I get help answer A) & B)? Thank you

6. [10 pts.] Suppose you bought a house worth $100,000 with a 10% downpayment and borrowing the rest from a bank as a 30 -year foxed-rate mortgage loan. (a) If the fixed rate on the mortgage is 4%, explain (using a pricing equation) how you would calculate the payment you would make to the bank each year for the next 30 years. (b) Suppose after buying the house, you rented it for a year for $5000. During that year, the price of the house also increased to 105,000 . Given your initial imestment (i.e., downpayment) and the interest cost on the debt-financing, what was your nominal return on holding this house for a year
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