Does ben have net gain or loss on the sale of his home

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Ben just bought a house in Missouri for $150,000 (he borrowed all the money for the house). He knows that he is going to sell the house in 5 years and move. He gets a 30-year mortgage with an annual interest rate of 3.75 percent. Assume Ben is able to make the mortgage payments at the end of every month. Further assume that the value of the house increases at an annual rate of 4.00 percent. What is the net gain/loss Ben may expect to realize on the sale of his home if he sells the home in 5 years for the market price (including all expenditure incurred since the origination of the loan)? What is the monthly mortgage payment for Ben? $ Assume Ben is able to make the mortgage payments every month. What is the unpaid mortgage balance in 5 years (on the sale of his home)? $ What is the future value of the house in 5 years after the appreciation? $ What is the total out-of-pocket cost on the mortgage during these 5 years? $ Does Ben have a net gain or loss on the sale of his home if he sells the home in 5 years (including all expenditure incurred since the origination of the loan)? (Type “A” if Ben has a net gain, type “B” if Ben has a net loss.) What is the net gain/loss Ben may expect to realize on the sale of his home if he sells the home in 5 years for the market price (including all expenditure incurred since the origination of the loan)? $

Reference no: EM131968166

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