Determine whether it is better to rent or own

Assignment Help Econometrics
Reference no: EM13187644

Opportunity cost Renting:
You currently pay $10,000 per year in a rent to a landlord for a $100,000 house, which you are considering purchasing. you can wualify for a loan of $80,000 at 9% if you put $20,000 down on the house. To raise money for your own downpayment, you would have to liquidate stock earning a 15% return. Neglect other concerns, like costing costs, capital gains, and tax consequences of owning, and determine whether it is better to rent or own.

Reference no: EM13187644

Questions Cloud

Define the cloud computing : 1)List the components of the LAMP stack. which commerical products do these components compete with 2) Define cloud computing 3)Describe the shift in skill sets required for IT workers that is likely to result from the widespread adoption of cloud ..
What is the area of the region bounded : What is the area of the region bounded by y=sin(x), y=cos(x), and the x-axis between x=0 and x=pi/2
Calculatiing the radius of the fresnel zone : What is the formula for calculatiing the radius of the fresnel zone - what is the formula for calculating C?
Find the area of the surface of the cylinder : find the area of the surface of the cylinder z^2 +y^2=9 lying in the first octant between planes y=x^2 and y=3x
Determine whether it is better to rent or own : You currently pay $10,000 per year in a rent to a landlord for a $100,000 house, which you are considering purchasing. you can wualify for a loan of $80,000 at 9% if you put $20,000 down on the house. To raise money for your own downpayment, you w..
Solve each of the quadratic equations below : Part 1: Solve each of the quadratic equations below. Show your work.
Compute the mass percentage of nacl in the mixture : The resulting solution required 51.30 mL of 0.08765 M AgNO3(aq) to precipitate the Cl-(aq) and Br-(aq) as AgCl(s) and AgBr(s). Calculate the mass percentage of NaCl(s) in the mixture.
Find the effective annual rate of return on her investment : Zoe purchased a house in 1999 for $192,000. In 2006 she sold the house and made a net profit of $50,000. Find the effective annual rate of return on her investment over the 7-yr period. (Round your answer to the nearest hundredth of a percentage p..
Find percentage of total variation in the dependent variable : Twenty-six observations are used to obtain the following regression results: DEPENDENT VARIABLE: LNY R-SQUARE F-RATIO P-VALUE ON F OBSERVATIONS: 26 0.3647 4.21 0.0170 VARIABLE PARAMETER STANDARD ESTIMATE ERROR T-RATIO P-VALUE INTERCEPT 2.9957 0.3545 ..

Reviews

Write a Review

Econometrics Questions & Answers

  Cost of holding inventory

To ensure that correct size of heart valve is available for heart surgery, Heart Plus, maker of valves employs salespeople to place and maintain inventories at hospitals in its market.

  What is the sacrifice ratio in the economy

Find the natural rate of uemployment b. Graph the short run Phillips curve if the expected rate of inflation is 3 percent or 0.03 c. What is the sacrifice ratio in this economy d. If the central bank has a loss function of L(pi) = (pi)..

  Lnrgdpaus and briefly comment on the graphs

Plot the level and first difference of lnrgdpaus and briefly comment on the graphs and obtain the sample correlograms of the level and first difference of lnrgdpaus for 20 lags. What do they suggest to you?

  What are the values of coefficient of determination

There is a belief that a person's performance on the GMAT (entrance exam to get into graduate school) can be predicted by their undergraduate GPA. Based on regression analysis what are the following values, (Round to three decimal places; put it ..

  What is the optimal amount of memory

Suppose you are designed a new computer and want to make sure it is optimal for your needs. Random Access Memory can be added to your computer at a cost of $100 per gigabyte. For you the benefit of the first gigabyte of RAM is $800, and the benefi..

  Find where demand and supply curves intersect

1. The three fundamental economic questions of what, how, and for whom: a-exist because of scarcity. b-are much more serious in a socialist system. c-are not serious in a capitalistic system. d-are not relevant in the industrialized world of today.

  What are consumption and saving in each period

What are consumption and saving in each period, assuming no borrowing constraints? What happens if the consumer faces a borrowing constraint that prevents her from borrowing?

  What was the percentage of gross fiscal deficit in 2010

The Economic Survey estimated the Forex reserves of India at over 297 billion US dollars. The surge in Forex is attributed to growth in which of the following sector Gross Fiscal Deficit stands at 4.8% of GDP. What was the percentage of Gross Fisc..

  Show that the preferred relation is transitive for mac

Mac Rowe doesn't sweat the petty stuff. In fact, he just cannot detect small differences. He consumes two goods, x and y. He prefers the bundle (x,y) to the bundle (x',y') if and only if (xy - x'y' > 1) . Otherwise he is indifferent between the tw..

  Find mean satisfaction rating

Over a period of years, a toothpaste has received a mean rating of 5.9, on a 7-point scale, for overall customer satisfaction with the product. Because of a minor unadvertised change in the product, there is concern that the customer satisfaction ..

  Find the two nash-equilibrium prices as a function

Firm 1 at point 0 and firm 2 at point 1. The consumers transportation cost are linear in the distance to the firms localisation (d1 and d2) and the consumers are uniformly distributed on the intervall (0,1) where x E (0,1) denotes the consumers p..

  What are positive and negative externalities

Explain the term demerit goods and give examples of this and what are externalities? What are positive and negative externalities?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd