How would the future worth change if the time period

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Reference no: EM132043128

Using a MARR of 10%, use Future Worth Analysis to compare the following Alternatives.

ALTERNATIVE 1: Buying a Home and Selling in 6 Years

Home List Price	$199,900
Down Payment and Buying Closing Costs	$41,980
House Payments	$1,287.12 per month
Annual Routine Repair and Maintenance	$2,000 per year
Tax Break	$3,861.36 per year
Annual Appreciation	$3,113
Selling Closing Costs	$2,000

ALTERNATIVE 2: Renting a Home for 6 Years

Damage Deposit	$900
Rental Payment	$1,200 per month

A) Show workings for Future Worth Analysis of each Alternative.

B) Which alternative should you choose?

C) How would the Future Worth change if the time period is changed to 2 years? What about 25 years?

Reference no: EM132043128

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