CASE REPORT $$ CASE: $$Rent or Buy$$ Student Name: $$ Class$/$Section: $1.$ Determine the required monthly payments for the mortgage. $2.$ Determine the $$opportunity$$ costs, on a monthly basis, of using the required funds for closing $($i$.$e$.,$ down payment plus all closing costs$),$ rather than leaving those funds invested and earning the monthly effective rate determined in part $(1).3.$ Determine the monthly additional payments required to buy versus rent $($include the monthly opportunity costs determined in part $(2)).4.$ Determine the principal outstanding on the mortgage after: two years, five years, ten years. Two Years $$ Five Years $$ Ten Years $5.$ Determine the $$net$$ future gain or loss after two, five and $10$ years under the following scenarios, which Rebecca Young has determined are possible after some $$due diligence$$ regarding future real$-$estate prices in the Toronto condo market: a$.$ The condo price remains unchanged. b$.$ The condo price drops $10\%$ over the next two years, then increases back to its purchase price by the end of five years, then increases by a total of $10\%$ from the original purchase price by the end of $10$ years. c$.$ The condo price increases annually by the annual rate of inflation of $2\%$ per year over the next $10$ years. d$.$ The condo price increases annually by an annual rate of $5\%$ per year over the next $10$ years. $$ Sell after $2$ years Sell after $5$ years Sell after $10$ years Price scenario $($a$)$ Price scenario $($b$)$ Price scenario $($c$)$ Price scenario $($d$)6.$ As Rebecca Young, what decision would you make? Describe any qualitative considerations that could factor into your decision. $$