Question: Problem 3 You close a deal to purchase a property that it is expected to appreciate ten times of its purchasing price in thirty years

Problem 3

You close a deal to purchase a property that it is expected to appreciate ten times of its purchasing price in thirty

years if you base your assumption in historic data. You can have a mortgage for twenty years in monthly payments.

Your twenty-year rate is 2.875% with 1.75 points in order to get your loan. Provide a detail amortization table and

the cash flow of your loan and evaluate the effective rate. What would be your profit rate and your assumed

estimated profit in dollars? Explain your work in your Word document.

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