Investment Method
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can I ask which of the investment method below in accumulating wealth is better?
Option 1:
deposit P dollar at the end of every month for 25 years at a dividend rate of 5% per annum.
Option 2:
purchase a house by loan amounting 250,000 dollar for 25 years with a nominal interest rate of 4.5% convertible monthly. The loan paid in monthly level of payments. The house value is increasing at yield of 3% per annum. Two years later, he is making money by renting his house at 700 dollar per month paying at the beginning of the month until the housing loan has been paid. The level monthly house rents are to be reinvested at dividend rate of 5% per annum.
finance actuarial-science
asked Dec 3 '18 at 10:00
NewbieNewbie
123
$endgroup$
add a comment |
$begingroup$
can I ask which of the investment method below in accumulating wealth is better?
Option 1:
deposit P dollar at the end of every month for 25 years at a dividend rate of 5% per annum.
Option 2:
purchase a house by loan amounting 250,000 dollar for 25 years with a nominal interest rate of 4.5% convertible monthly. The loan paid in monthly level of payments. The house value is increasing at yield of 3% per annum. Two years later, he is making money by renting his house at 700 dollar per month paying at the beginning of the month until the housing loan has been paid. The level monthly house rents are to be reinvested at dividend rate of 5% per annum.
finance actuarial-science
asked Dec 3 '18 at 10:00
NewbieNewbie
123
$endgroup$
$begingroup$
What have you tried to calculate the wealth at option 1? It doesn´t look very hard.
$endgroup$
– callculus
Dec 3 '18 at 19:21
add a comment |
$begingroup$
can I ask which of the investment method below in accumulating wealth is better?
Option 1:
deposit P dollar at the end of every month for 25 years at a dividend rate of 5% per annum.
Option 2:
purchase a house by loan amounting 250,000 dollar for 25 years with a nominal interest rate of 4.5% convertible monthly. The loan paid in monthly level of payments. The house value is increasing at yield of 3% per annum. Two years later, he is making money by renting his house at 700 dollar per month paying at the beginning of the month until the housing loan has been paid. The level monthly house rents are to be reinvested at dividend rate of 5% per annum.
finance actuarial-science
asked Dec 3 '18 at 10:00
NewbieNewbie
123
$endgroup$
can I ask which of the investment method below in accumulating wealth is better?
Option 1:
deposit P dollar at the end of every month for 25 years at a dividend rate of 5% per annum.
Option 2:
purchase a house by loan amounting 250,000 dollar for 25 years with a nominal interest rate of 4.5% convertible monthly. The loan paid in monthly level of payments. The house value is increasing at yield of 3% per annum. Two years later, he is making money by renting his house at 700 dollar per month paying at the beginning of the month until the housing loan has been paid. The level monthly house rents are to be reinvested at dividend rate of 5% per annum.
finance actuarial-science
finance actuarial-science
asked Dec 3 '18 at 10:00
NewbieNewbie
123
asked Dec 3 '18 at 10:00
NewbieNewbie
123
edited Dec 3 '18 at 10:30
Newbie
asked Dec 3 '18 at 10:00
NewbieNewbie
123
asked Dec 3 '18 at 10:00
NewbieNewbie
123
asked Dec 3 '18 at 10:00
NewbieNewbie
123
123
$begingroup$
What have you tried to calculate the wealth at option 1? It doesn´t look very hard.
$endgroup$
– callculus
Dec 3 '18 at 19:21
add a comment |
$begingroup$
What have you tried to calculate the wealth at option 1? It doesn´t look very hard.
$endgroup$
– callculus
Dec 3 '18 at 19:21
$begingroup$
What have you tried to calculate the wealth at option 1? It doesn´t look very hard.
$endgroup$
– callculus
Dec 3 '18 at 19:21
$begingroup$
What have you tried to calculate the wealth at option 1? It doesn´t look very hard.
$endgroup$
– callculus
Dec 3 '18 at 19:21
add a comment |
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$begingroup$
What have you tried to calculate the wealth at option 1? It doesn´t look very hard.
$endgroup$
– callculus
Dec 3 '18 at 19:21