Question

QUESTION 5 You bought an investment property for $125,000 and sold it for $200,000 after 5 years. Ignoring transaction corn,
0 0
Add a comment Improve this question Transcribed image text
Answer #1

we know Future Value - Present valus ltr = 0000هم کرد و ) ooo و رو29/ = (/) ع - 2 . 07838 r = interest rate = 9-856%

Add a comment
Know the answer?
Add Answer to:
QUESTION 5 You bought an investment property for $125,000 and sold it for $200,000 after 5...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • The asking price for the property is $1.000.000 rents are estimated at $200,000 during the 1st...

    The asking price for the property is $1.000.000 rents are estimated at $200,000 during the 1st year and are expected to grow at 5 percent ner vear. Vacancies and collection losses are expected to be 10% of rents. Operating expenses will be 35 percent of effective gross income. Capital expenditures will be 5% of effective gross income. A 30-year fixed rate loan for 70 percent of the purchase price can be obtained at 10 percent interest rate. The property is...

  • The asking price for the property is $1,000,000; rents are estimated at $200,000 during the first...

    The asking price for the property is $1,000,000; rents are estimated at $200,000 during the first year and are expected to grow at 5% per year. Vacancies and collection losses are expected to be 10% of rents. Operating expenses will be 35% of effective gross income. Capital expenditures will be 5% of effective gross income. A 30-year fixed rate loan fro 70 percent of the purchase price can be obtained at 10% interest rate. The property is expected to appreciate...

  • you just bought an investment property for $450,000 . The loan is fully amortized over 30...

    you just bought an investment property for $450,000 . The loan is fully amortized over 30 years and payments are made monthly You took a loan for 80% of the purchase price to buy the property. The nominal annual rate of interest is 3.9% for this loan. a. How much will your monthly loan payments be? b. How much total interest will you pay over the entire life of the loan? What is your loan balance after exactly 15 years...

  • You just bought a house and have a mortgage of $200,000. The mortgage is for 30...

    You just bought a house and have a mortgage of $200,000. The mortgage is for 30 years and has a mortgage rate of 8 percent annually. After 36 payments (3 years ). What will be the remaining balance on your mortgage? What is the cumulative interest you have paid over the 36 periods?

  • You have plenty of cash to invest. You are considering an investment of $125,000 in a...

    You have plenty of cash to invest. You are considering an investment of $125,000 in a project which is expected to earn $14425 a year for ten years. Is it an attractive investment if your minimum expected annual rate of return is 5% (compound interest)? Calculate the expected annual rate of return (R) of the project. (6 points) NO TABLE and use a simple equation. No hit or miss trial

  • You have plenty of cash to invest. You are considering an investment of $125,000 in a...

    You have plenty of cash to invest. You are considering an investment of $125,000 in a project which is expected to earn $14425 a year for ten years. Is it an attractive investment if your minimum expected annual rate of return is 5% (compound interest)? Calculate the expected annual rate of return (R) of the project. (6 points) (Please give proper steps by using the Present Value of an Annuity!

  • You have plenty of cash to invest. You are considering an investment of $125,000 in a...

    You have plenty of cash to invest. You are considering an investment of $125,000 in a project which is expected to earn $14425 a year for ten years. Is it an attractive investment if your minimum expected annual rate of return is 5% (compound interest)? Calculate the expected annual rate of return (R) of the project. (6 points) (NO TABLES ONLY HAND CALCULATION) As well explain which equation you have used

  • You have plenty of cash to invest. You are considering an investment of $125,000 in a...

    You have plenty of cash to invest. You are considering an investment of $125,000 in a project which is expected to earn $14425 a year for ten years. Is it an attractive investment if your minimum expected annual rate of return is 5% (compound interest)? Calculate the expected annual rate of return (R) of the project. (6 points) NO TABLE, Full calculations, explain what happened, please have the correct answers when using an equation...

  • 6. Six years ago, an investor bought a property for $2.5 million with 10% down and...

    6. Six years ago, an investor bought a property for $2.5 million with 10% down and a 20 year mortgage with an interest rate of 5,6% a year. What were the monthly payments? 5 points Today the company sold the property and had an annual return of 10% on their investment What was the price of the property when it was sold? 5 points How much equity was in the property when it was sold? 5 points If the company...

  • 5. Lausanne Properties (LP) is considering an investment in a leasehold property. After 10 years, the...

    5. Lausanne Properties (LP) is considering an investment in a leasehold property. After 10 years, the ownership will automatically transfer to the seller. However, the property could be offered as a parking lot to the adjoining hotel which will annually pay $ 100,000 at the end of the first 5 years and annually $ 110,000 for the five years after. LP expects to earn an annual return of 10% on this investment. How much should they pay for the property...

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