Estimate the mortgage, Question 1: What financial model you will use in order to estimate, Accounting Basics

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Estimate the mortgage

Problem:

You would like to buy a home. Unfortunately, you have no cash to pay the whole price of the house. So, you are taking mortgage to finance the purchase. Now you are shopping for the best mortgage for you.

Required:

Question 1: What financial model you will use in order to estimate the mortgage you can take?

Question 2: List three necessary values you have to know in order to compute the value of the mortgage.

Question 3: What assumptions you are making when you are computing the mortgage payments?

Note: Provide support for rationale.

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Accounting Basics: Estimate the mortgage

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Accounting Basics: Estimate the mortgage

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