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Answers:
Question 1: $924.77 (answers will vary, this assumes a 7% interest rate). Use the formula =-PMT(F8/12,360,139000) to find the exact answer.
Question 2: $949.51 (again, answers will vary, this assumes a 6.5% rate). Use the formula =-PMT(M8/12,180,109000)to find the exact answer.
Question 3: With the above assumptions, the equities will be $69,720.71 for Scenario 1 and $140,472.45 for Scenario 2. After subtracting $30,000 for the cruise, you’d have an extra $40,751.54 if you waited 10 years to take the cruise.
Note: Inflation would increase the value of the house equally in both examples. However, the cruise price would most likely be greater in Scenario 2. Assuming 3.5% inflation, the price of the cruise would increase to $42,317.96. Even so, you’d still have an extra $28,433.78 after taking the cruise.