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Question 10 10 pts Consider the purchase of a rental property for $400,000. You can borrow...
Question 5 10 pts You borrow $400,000 at a rate of 5% per year compounded monthly...
Question 5 10 pts You borrow $400,000 at a rate of 5% per year compounded monthly and make monthly payments for 2 years to repay the loan. What Excel function can be used to calculate the loan payment amount? =PMT((5/12)%, 240, -400000) =PMT(5%, 20, -400000) =PMT((5/12)%, 24,-400000) =PMT(5%, 240, 400000)
Property Assumptions: Purchase Price:  ...
Property Assumptions: Purchase Price: $4,000000 Year 1 PGI: $540,000 PGI Growth Rate (Annual): 3% Annual Vacancy and Collection Loss (VCL): 10% Year 1 Operating Expenses (OER): 35% OPEX growth rate after first year 2% Sales Price: -Capitalize HP+1 NOI at 9% $3,895,042 Anticipated Holding Period: 3 Years Maximum LTV: 70% Interest Rate: 5% Amortization Rate: 30 Years Payments Per Year: 12 Investor Hurdle Rate (Unleveraged): ...
More Calculator Practice-Borrowing Capacity Use your calculator to solve the following problems. You can default to Exc...
More Calculator Practice-Borrowing Capacity Use your calculator to solve the following problems. You can default to Excel if this is not possible. 1. You can afford to pay $6,000 a month for a 30-year mortgage. When interest rates are 6.125% how much can you borrow? Your answer: 2. If the loan represents 60% of the property's total value, how much is the property worth? Your answer: 3. How much equity do you require for the property? Your answer: 4. Suppose...
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortga...
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20- year fixed rate mortgage at 6 % APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: 14) A) $3094 B) $1934 C) $1547 D) $2708 5 A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following...
Rent vs Own You are considering an option to purchase or rent a single residential property....
Rent vs Own You are considering an option to purchase or rent a single residential property. You can rent it for $4,000 per month and the owner would be responsible for maintenance, property insurance, and property taxes. Alternatively, you can purchase this property for $300,000 and finance it with an 80% mortgage at 7% interest, 25 year - fixed. The loan can be prepaid at any time with no penalty. You have done research in the market and found that...
You are planning to purchase a new house or condominium to use as your primary residence....
You are planning to purchase a new house or condominium to use as your primary residence. This assignment will analyze some of the financial aspects of doing so. The final purchase price is $420,000 and, if you need a mortgage from the bank, your down payment will have to be 20% of the purchase price. The mortgage is a 30-year fixed rate loan with an Annual Percentage Rate (APR) of 6.00%. You will incur a one-time closing cost of $6,500...
You are considering the purchase of a small existing office building for $2,575,000 today. Below, you...
You are considering the purchase of a small existing office building for $2,575,000 today. Below, you are given the information you need to analyze the investment and decide how to proceed. Remember: Your submission for this assignment should be calculated in Microsoft Excel. Please show all your formulas in the spreadsheet. I can only give you partial credit if I see how you did each calculation. Your expectations for this stabilized property include the following: first-year gross potential income of...
Solve each problem and show your work clearly 1. You plan to borrow $100,000 at 10%,...
Solve each problem and show your work clearly 1. You plan to borrow $100,000 at 10%, compounded annually with payments at the end of each year. The length of the loan is 10 years. How big should your annual payments be? 2.A friend has asked for your help in determining whether she should invest in a property. She tells you that the property will have annual cash flows of $1,000 during the first two years and will increase by $200...
Question 2: If you can borrow $100,000 to purchase a piece of land this year and...
Question 2: If you can borrow $100,000 to purchase a piece of land this year and burrow this amount at 5% interest with the anticipation of selling this land for $110,000 at the beginning of next year, what is the present value of the gain made on this transaction if the current lending rate is 3%? Depict the cash flow of each transaction. There are three cash flow transactions: 1) Cash flow from burrowing: 2) Cash flow from investing in...
may I please have help with number 21 and 22 20. You borrow S 100,000 mortgage...
may I please have help with number 21 and 22
20. You borrow S 100,000 mortgage with monthly payments. You can either choose 15-year term with interest rate 7%, or choose 30-year term with interest nte 8% 1f both loans are held to maturity, what is the difference of total interest payment between these two mortgages? a. $84,854 b. $102.366 $125.786 d. None of the above 21 You borrow si 10,000 at 6% for 30 years with monthly payments. You...
Question 5 10 pts You borrow $400,000 at a rate of 5% per year compounded monthly and make monthly payments for 2 years to repay the loan. What Excel function can be used to calculate the loan payment amount? =PMT((5/12)%, 240, -400000) =PMT(5%, 20, -400000) =PMT((5/12)%, 24,-400000) =PMT(5%, 240, 400000)
More Calculator Practice-Borrowing Capacity Use your calculator to solve the following problems. You can default to Excel if this is not possible. 1. You can afford to pay $6,000 a month for a 30-year mortgage. When interest rates are 6.125% how much can you borrow? Your answer: 2. If the loan represents 60% of the property's total value, how much is the property worth? Your answer: 3. How much equity do you require for the property? Your answer: 4. Suppose...
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20- year fixed rate mortgage at 6 % APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: 14) A) $3094 B) $1934 C) $1547 D) $2708 5 A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following...
You are planning to purchase a new house or condominium to use as your primary residence. This assignment will analyze some of the financial aspects of doing so. The final purchase price is $420,000 and, if you need a mortgage from the bank, your down payment will have to be 20% of the purchase price. The mortgage is a 30-year fixed rate loan with an Annual Percentage Rate (APR) of 6.00%. You will incur a one-time closing cost of $6,500...
Question 2: If you can borrow $100,000 to purchase a piece of land this year and burrow this amount at 5% interest with the anticipation of selling this land for $110,000 at the beginning of next year, what is the present value of the gain made on this transaction if the current lending rate is 3%? Depict the cash flow of each transaction. There are three cash flow transactions: 1) Cash flow from burrowing: 2) Cash flow from investing in...
may I please have help with number 21 and 22
20. You borrow S 100,000 mortgage with monthly payments. You can either choose 15-year term with interest rate 7%, or choose 30-year term with interest nte 8% 1f both loans are held to maturity, what is the difference of total interest payment between these two mortgages? a. $84,854 b. $102.366 $125.786 d. None of the above 21 You borrow si 10,000 at 6% for 30 years with monthly payments. You...
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