F.2019 Econ 311 Assignment 2 Part III. Case Study Do the following question on a worksheet entitled "Case Stud The Potters are deliberating whether to purchase a house or the next 10 years. They are assured by both of their employer new location will occur for at least this number of years. The s allend is very good, and they like the neighbourhood where the They have total of $40,000 available now and estimate the $2,850 per month for the total house payment. Rent-don't buy plan: If the Potters do not buy a house, rent the current house for $2,300 per month. They will then savings account that pays effective rate 6% per year. Addition Lo this investment $550 at the end of every moth, difference can afford and what they indeed pay. Buy a house plan: The Pollers are considering house at Taxes and insurance are $500 per month. Up front fees are lawyer fee, etc. ) Any money not spent on the down payme monthly payment will be invested at a rate of 6% per year. pale selling the house after 10 years and plan for a 10% incre $363,000 (after selling expenses are paid). The current 15-ye (per year), with downpayment of 10%. 1. Evaluate both plans. 2. Reconsider the problem assuming the selling price aft 70% of the purchase price, that is $231,000