HP 12c Platinum - The Rent or Buy Decision

Appendix : Formulas Used 193
n! =
The Rent or Buy Decision
Market Value = PRICE(1 + I)
n
where:
Net Cash Proceeds on Resale = Market Value – Mortgage Balance – Commis-
sion
The interest rate is obtained by solving the financial (compound interest) equa-
tion for i using:
Annual interest rate = 12 × i
I = appreciation per year (as decimal)
n = number of years
n = number of years house is owned
PV = down payment + closing costs
PMT = mortgage payment + taxes + maintenance – rent –
(% tax) (interest + taxes)
FV = net cash proceeds on resale
i
i 1=
n
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