Head First Excel by Michael Milton

Author:Michael Milton
Language: eng
Format: epub
Tags: COMPUTERS / Desktop Applications / Spreadsheets
ISBN: 9780596807726
Publisher: O'Reilly Media
Published: 2010-03-10T16:00:00+00:00

The broker weighs in...

Exercise

An email just came through from your better half talking about the assumptions you two should use for your modeling. And since your purchase of a home is a partnership, you’d better pay attention to those suggestions!

From: Better Half

To: You

Subject:

Hey You,

I’ve been doing a lot of thinking, and I think that we should use these assumptions. First off, let’s go for the $250,000 house.

I think that we should take out a loan for as little as possible, so let’s put down $100,000. That way, the present value of our loan will be just $150,000.

The bank officer called and said that we qualify for a 30-year mortgage at 5% interest, and that’s the best rate we’ve seen so far, so I think we should go with it.

And as for the amount we expect the house to appreciate...that’s a tough one. The houses we’re looking at have been in a pretty up-and-coming neighborhood, and unbiased experts are predicting 7% annual growth over the next five years. But I say we should project 3% just to be on the conservative side.

Love,

Your Better Half

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