Time Value Money in Everyday Life
Overview:
This assignment will give you the opportunity to apply what you have learned about Time Value Money to everday life. In this instance, calculating a mortage’s monthy
payment and principle.
Instructions:
Congratulations! You have just signed a contract to purchase your first home. Your purchase price is $300,000 and you plan to put 20% down. Calculate your monthly principal and interest payments for the life of the loan for:
- a 15-year mortgage at 2.875%
- a 30-year mortgage at 3.25%.
Compare and contrast these two options. - What are the Pros and Cons of each?
- Would a rising rate environment impact your decision on which to choose?
Why? - How about an environment where rates are decreasing? Would there be a better
option?
Requirements:
- Submit in a Word document or Excel spreadsheet.
- At least 2 pages in length.
Answer preview for Time Value Money in Everyday Life
APA
900 Words