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

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1. Nov 5, 2012

### Niaboc67

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. Nov 11, 2016

### EnumaElish

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

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