ZuoTi.Pro
Question

A real estate developer offers to sell you some prime real estate for $400,000 today. You...

A real estate developer offers to sell you some prime real estate for $400,000 today. You agree to pay $300,000 in exactly 3 months but the balance in exactly 15 months from today when you expect to receive some cash from an investment. How much will you need to pay the developer in 15 months if the interest rate is 6% per annum compounding monthly (rounded to the nearest dollar)?

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

Homework Answers

Answer #1

SEE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. HAPPY TO HELP YOU. THUMBS UP PLEASE. THANK YOU

File Home nert Page Layout Formulas Data Review View dd-Ins s Cut aCopy E AutoSum Calibri Wrap Text General в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Editing Format Painter Clipboard DC138 DC Font Alignment Number Styles Cells DE real estate developer DF DG DH DI DJ DK 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 11 1 トーCALCULATOR ( LOAN OPTIONS | pv, fv, annuity i CAP STRU VALUE 400000- (300000)*(PVIF @6% FOR 3 MONTHS) + (X*PVIF@6% FOR 18 MONTHS) 400000 300000*(1/(1+0.06/12)A3)+(X (1/(1+0.06/12)A15) 400000300000*(1/(1+0.005)A3)(X*(1/(1+0.005)A15) 400000 300000 0.985149X*0.927917 400000295544.70 X 0.927917 X-112570 BOX DILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2 ShelI rences: x261 11:08 07-01-2019

0 0
Add a comment
Know the answer?
Add Answer to:
A real estate developer offers to sell you some prime real estate for $400,000 today. You...
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

  • A real estate developer offers to sell you some prime real estate for $584,000 today. You...

    A real estate developer offers to sell you some prime real estate for $584,000 today. You agree to pay $224,000 in exactly 6 months but the balance in exactly 22 months from today when you expect to receive some cash from an investment. How much will you need to pay the developer in 22 months if the interest rate is 13.5% per annum compounding monthly

  • Your friend offers to sell you her car for $30,000 today. You agree to pay $14,000...

    Your friend offers to sell you her car for $30,000 today. You agree to pay $14,000 today but the balance in exactly 17 months when you expect to have some cash. How much will you need to pay your friend in 17 months if the interest rate is 8% per annum compounding monthly?

  • Question 5 Your uncle offers to sell you his vintage Rolls Royce. He suggests a payment...

    Question 5 Your uncle offers to sell you his vintage Rolls Royce. He suggests a payment plan where you pay just $12,000 today, $7200 in 11 months and $70,000 in exactly 21 months from today. If the interest rate is 7.3% per annum compounding monthly, what is the value of the offer (in present day dollars, rounded to the nearest dollar; don’t show $ sign or commas)?

  • Question 14 Your uncle offers to sell you his vintage Amilcar Tourer. He suggests a payment...

    Question 14 Your uncle offers to sell you his vintage Amilcar Tourer. He suggests a payment plan where you pay just $4,000 today, 5,000 in 6 months and $9,000 in exactly 12 months from today. If the interest rate is 12% per annum compounding monthly, what is the value of the offer (in present day dollars)? Select one: A. $16,697.27 B. $16,752.70 C. $17,090.64 D. $17,329.74

  • Question 4 You inherit $554,000. You can receive the $554,000 in one lump sum payment today...

    Question 4 You inherit $554,000. You can receive the $554,000 in one lump sum payment today or, alternatively, receive two amounts: $354,000 in 11 months and $220,000 in 21 months from today. If you can earn 5.7% per annum compounding monthly on your monies, what is the value of the option to receive two payments (in present day value)? (to nearest whole dollar,; don’t use $ sign or commas)

  • 1. You are a paralegal in a law firm that represents a real estate developer. The...

    1. You are a paralegal in a law firm that represents a real estate developer. The developer has obtained a necessary driveway easement to her property. After the easement was obtained, it was discovered that the property over which the driveway is located had been earlier pledged as security for a debt to the First Bank and Trust. It also has been discovered that the First Bank and Trust debt is in default and that the First Bank and Trust...

  • Hi, Could you solve/fill the blank? Thanks a lot A commercial real estate developer plans to...

    Hi, Could you solve/fill the blank? Thanks a lot A commercial real estate developer plans to borrow money to finance an upscale mall in an exclusive area of the city. The developer plans to get a loan that will be repaid with uniform payments of $350,000 beginning in year 2 and ending in year 16. How much will a bank be willing to loan at an interest rate of 8% per year? The bank will be willing to loan the...

  • You have the alternative of paying for university fees today for a payment of $15,000 or,...

    You have the alternative of paying for university fees today for a payment of $15,000 or, you can select a payment plan where you pay $8,000 in 10 months from today and another $9,000 in exactly 18 months from today. If the interest rate is 7.0%p.a. compounding monthly, what is the advantage that the payment plan has over the upfront payment? (expressed in present day value rounded to the nearest cent; do not show $ sign or comma separators; if...

  • Green Hills Properties is evaluating a real estate investment of West Ranch Estates. Management plans to...

    Green Hills Properties is evaluating a real estate investment of West Ranch Estates. Management plans to buy the property today and sell it 6 years from today. The initial cost of the property is $15 million and the expected sale price is $35 million. What is the IRR of the investment? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer. Enter your response below. Number %

  • 10.You have the alternative of paying for university fees today for a payment of $15,000 or,...

    10.You have the alternative of paying for university fees today for a payment of $15,000 or, you can select a payment plan where you pay $8,000 in 6 months from today and another $12,000 in exactly 18 months from today. If the interest rate is 9.9%p.a. compounding monthly, what is the advantage that the payment plan has over the upfront payment?

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