ntroduction:
There are many methods of financing the purchase of residential property, each having advantages which make it the method of choice under a given set of circumstances. The selection of one method from several for a given set of conditions is the topic of this project. Three methods of financing are described in detail. You are asked to re-evaluate Plan A and Plan B with modified values assigned below, and perform some additional analysis.
Directions:
- Read Financing a house case study- attached
- Use the following modified values to work on your Project 1.
- Price of the house is $160,000.
- House will be sold in 10 years for $185,000.
- The project must be completed in Excel. Answer the questions listed below.
- Evaluate Plan A and Plan C.
- Select the best financing method.
- What is the total amount of interest paid in Plan A and Plan C through the 10-year period, respectively?
- You will be evaluating Plans A and C. Don’t worry about Plan B.
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