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Homework Help: Finance formulas to compare the best value of a house

  1. Nov 5, 2012 #1
    1. The problem statement, all variables and given/known data
    House one is going for say 350.000 and House two is going for 250.000, both have the same bed and bath. Yet i want to add variables for instance house one has a decline in crime rate variable also a newly build mall. House two has new schools and crime is on the rise. So my question is how would i set this up using the formulas, and which one(s). Also i want to add the variables of both houses with crime, mall, school. All this within a 10 year span. So i am looking for the best house deal, where down the line one of two houses would be the best deal. The crime variable(s) would a depreciation for the first and increasing for the second. The mall would be a increase value variable. And schools would a increase variable. Please help, and any additions or edits you'd like to make to the variables or anything please go right ahead

    Thank you!

    2. Relevant equations
    I am doing a project using finance formulas such as: Compound interest formula of a future value A=P(1+i) or Present Value P=A/(1+i)^n. As well as Annuity Formula of future value S=R((1+i)^n-1)/i or Present Value P=R((1-(1+i)^-n)/i

    3. The attempt at a solution

    not entirely sure how to do so.
  2. jcsd
  3. Nov 11, 2016 #2


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    Science Advisor
    Homework Helper

    Why aren't the additional variables already captured in the price?
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