Ask Question
12 December, 13:12

Deb and Rusty know that buying a house will save them money on taxes because they get to deduct the interest they pay to the bank each year and the property taxes they pay each year. First create a separate worksheet from the amortization schedule. Title this worksheet Analysis. In this worksheet, create a column titled Income starting at $90,000 and increasing at 3% for 20 years. What is their income after 20 years

+2
Answers (1)
  1. 12 December, 16:45
    0
    Their income after 20 years would be 72,550 dollars.

    Explanation:

    The income after 20 years can easily de determin by using compounding

    formula

    Future Value = Present Value (1 + I) ^ 20

    = 90,000 (1 + 0.03) ^ 20

    = 162,550 dollars

    Income can be determing by subtracting Pv from Fv i. e

    Income = 162,550 - 90,000 = 72,550

    Calculation on excel sheet

    A B C D

    1 90,000 1.03 = A1 * 1.03 = C1-A1

    2 = D1 1.03 = A2 * 1.03 = C2-A2

    20 = D19 1.03 = A20 * 1.03 = A20 - C20

    * In work sheet colunm D will show income on investment.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Deb and Rusty know that buying a house will save them money on taxes because they get to deduct the interest they pay to the bank each year ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers