Question 1 You are planning to buy a house in Gulburg green, you can either lease the house from the society or purchase it with a six-year loan. The house you wish to buy costs Rs.30,000,000. The dealer has a special leasing arrangement where you pay Rs.1,700,000 today and Rs.450,000 per month for the next six years. If you purchase the house, you will pay it offin monthly payments over the next six years at required rate of retum of 6 percent per annum. You believe that you will be able to sell the house for Rs.35,000,000 in six years. Required to calculate and answer the following : 1. What option will be beneficial for you either buying house in single payment or buying on lease. 2. Assume you purchase the house in onetime payment and sold it for 35,000,000 after six years on same interest rate compounding monthly will this be a good and profitable deal for you.

Question 1 You are planning to buy a house in Gulburg green, you can either lease the house from the society or purchase it with a six-year loan. The house you wish to buy costs Rs.30,000,000. The dealer has a special leasing arrangement where you pay Rs.1,700,000 today and Rs.450,000 per month for the next six years. If you purchase the house, you will pay it offin monthly payments over the next six years at required rate of retum of 6 percent per annum. You believe that you will be able to sell the house for Rs.35,000,000 in six years. Required to calculate and answer the following : 1. What option will be beneficial for you either buying house in single payment or buying on lease. 2. Assume you purchase the house in onetime payment and sold it for 35,000,000 after six years on same interest rate compounding monthly will this be a good and profitable deal for you.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter9: Obtaining Affordable Housing

Section: Chapter Questions

Problem 5DTM

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