Question: want pure answer nit copy paste ok thanks Question Description The expected total property return is (8!12)% per month for a $100K house. You make

want pure answer nit copy paste ok thanks

want pure answer nit copy paste ok thanks Question Description The expected

Question Description The expected total property return is (8!12)% per month for a $100K house. You make a 20% down payment and arrange $80K mortgage nancing at a (4/12)% monthly interest rate. a. What is the opportunity cost (S amount) of your down payment during the rst month? Hint: The dollar opportunity cost of a down payment equals the down-payment amount multiplied by the expected monthly rate of equity return. b. The expected total property return to the house is unchanged at (8X12)% per month. The home price appreciates by a constant rate of (3/12)% each month. After 60 months, the home price will be higher, while the mortgage balance is reduced to $72K. What is the opportunity cost (3 amount) of your equity during the 61st month

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