ZuoTi.Pro
Question

Doris Wade purchased a condominium for $50,000 in 1982. Her down payment was $12,000. She financed the remaining amount as a $38,000 35-year mortgage at 8%, compounded monthly. Her monthly payments are $190. It is now 2007 (25 years later) and Doris has sold the condominium for $100,000, immediately after making her 300th payment on the unit. Find her effective annual internal rate of return on this investment. Choose the closest answer below. A. OB. O c. D. 2.8% 8.7% 5.9% 1.4%

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

VERY GOOD SUM FROM ENGINEERING ECONOMICS BY SULLIVAN BOOK

Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text General ta copy ▼ B า 프 . Ej-., Δ. : r_一 逻锂函Merge & Center. $, % , 弼,8 Paste Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Format Painter Clipboard PO161 PJ Font Alignment Number Styles Cells Formula Bar PK PL PM PN PO PR PS PT PU 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 11 1 トーCALCULATOR ( LOAN OPTIONS | pv, fv, annuity 1 CAP STRU VALUE WE HAVE TO CALCULATE IRR HERE RATE MONTHLY RATE DOWN PAYMENT PMT YEARS LEFT NO OF INSTALMENTS UNPAID SALE VALUE 8% 0.6666667% 12000 190 10 120 100000 LOAN BALANCE 15660.08 [EXCEL PV(PO148,PO152,-PO150)] INSTALMENTS PAID MONTHLY IRR = ANNULIASED IRR 300 0.111048% [EXCEL-RATE(PO157,-P0150,-PO149,PO153-PO155)) 1.34% (1 +0.11105%/12)^12-1 FORMULA : (1+r/m)^m-1 NEAREST ANSWER: D : 1.4% BOX DILUTION. DOLLAR COST AVG MORTGAGE EXPO Sheet. Sheet2. Shdi rences: x261 23-01-2019

0 0
Add a comment
Know the answer?
Add Answer to:
Doris Wade purchased a condominium for $50,000 in 1982. Her down payment was $12,000. She financed...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Doris Wade purchased a condominium for $50,000 in 1985. Her down payment was $15,000 She financed...

    Doris Wade purchased a condominium for $50,000 in 1985. Her down payment was $15,000 She financed the remaining amount as a $35,000, 35-year mortgage at 8%, compounded monthly. Her monthly payments are $220. It is now 2000 (15 years later) and Doris has sold the condominium for $100,000, immediately after makin her 180th payment on the unit. Find her effective annual internal rate of return on this investment Choose the closest answer below. O A. 3.1% OB. 10.1% OC. 4.1%...

  • Doris Wade purchased a condominium for $50,000 in 1980. Her down payment was $10,000. She financed...

    Doris Wade purchased a condominium for $50,000 in 1980. Her down payment was $10,000. She financed the remaining amount as a $40,000, 30-year mortgage at 8%, compounded monthly. Her monthly payments are $200. It is now 2000 (20 years later) and Doris has sold the condominium for $100,000, immediately after making her 240th payment on the unit. Find her effective annual internal rate of return on this investment Choose the closest answer below. OA. 5.5% O B. 7.6% OC. 9.8%...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT