What would the yearly opportunity cost

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Question - You are thinking about buying a house. You find one you like that costs ?$250,000.You learn that your bank will give you a mortgage for? $200,000and that you would have to use all of your savings to make the down payment of $50,000.

You calculate that the mortgage? payments, property? taxes, insurance,? maintenance, and utilities would total $1,200 per month.

Given the information? above, if the interest rate on your savings account was 2 percent a? year, then what would the yearly opportunity cost of using this money for a down payment be?

Reference no: EM133279196

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