Exercise 2: You are buying a foreclosed house. Your income only allows you to make a payment of $800 per month. You can negotiate the price of the house or the annual percent rate (APR). Proceed as follows. a. Based on the information in columns B and C, use Goal Seek to find the price that drives the monthly payment to $800. b. Based on the information in columns E and F, use Goal Seek to find the APR that drives the monthly payment to $800. Adjust price Price APR Months of payments Monthly Payment Adjust APR House Cost $130,000.00 7.00% APR Months of Payments Monthly Payment 360 360 $0.00 $361.11 Target Payment $800.00 Target Payment $800.00

Exercise 2: You are buying a foreclosed house. Your income only allows you to make a payment of $800 per month. You can negotiate the price of the house or the annual percent rate (APR). Proceed as follows. a. Based on the information in columns B and C, use Goal Seek to find the price that drives the monthly payment to $800. b. Based on the information in columns E and F, use Goal Seek to find the APR that drives the monthly payment to $800. Adjust price Price APR Months of payments Monthly Payment Adjust APR House Cost $130,000.00 7.00% APR Months of Payments Monthly Payment 360 360 $0.00 $361.11 Target Payment $800.00 Target Payment $800.00

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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