Assignment 4 Part 2

Need help calculating

Subject: Finance

Using the table Please show step by step how to solve a. and b. in excel Suppose that there is $2,500 origination cost. A house with price of $250,000 20% down payment, loan amount $200.000 30-year fixed rate mortgage with interest rate in the table a. Which choice would Carlton like to choose if he will live in the house for 30 years? b. Which choice would Carlton like to choose if he will live in the house for 5 years?

What is the internal rate of return for this rental condominium investment?

Consider an income producing property that according to your assumptions and estimations is currently worth $4M on an unlevered basis when a 7.5% required rate of return is applied. One of the assumptions that you have made when arriving at that estimate is that you will sell the property in 6 years for a CAP of 8%, which translates to $4.4M at that future point in time. a. At what price will you sell the property in 6 years if all your assumptions materialized except that you will sell the property for a CAP of 7% instead of 8%? Show your calculations. b. All other things equal, by how much the situation described in part a affects the current value of the property.

When purchasing a $210000 house, a borrower is comparing two loan alternative. The first loan is a 90% loan at 10.25% for 25 years. The second loan is an 85% loan for 9.75% over 15 years. Both have monthly payments and the property is expected to be held over the life of the loan. What is the incremental cost of borrowing the extra money? A. 20.25% B. 16.17% C. 11.36% D. 12.42% Please show all steps

Assume that at the beginning of the year, you purchase an investment for $2,500 that pays $67 annual income. Also assume that the investment's value has decreased to $2,350 at the end of the year. a. What is the rate of return for this investment? b. Is the rate of return a positive or a negative number? Complete this question by entering your answers in the tabs below. Req 1 Req 2 What is the rate of return for this investment? Note: Enter your answer as a percent rounded to 2 decimal places. Input the amount as a positive value. Rate of return % Req 1 Req 2 >

Please help me with show all calculation thanku

pts You recently bought a single-family investment property for $276,000 with a fixed interest rate mortgage loan with an initial balance of $125,000, 3.55% annual nominal interest rate, and a 10-year fully amortizing loan term. Cash flow after debt service and before tax is estimated to be as follows: Year 1: $6,500 Year 2: $6,750 Year 3: $7,000 You expect a three-year holding period and that you'll be able to sell the investment for $300,000 three years from today. What do you estimate for the leveraged before tax IRR and how IRR is partitioned between cash flow from operations and cash flow from the sale? Use annual compounding or discounting to solve this problem. 5.20% with cash flow from operations representing 6.63% and cash flow from the sale representing 93.37% 5.20% with cash flow from operations representing 93.37% and cash flow from the sale representing 6.63% 15.29% with cash flow from operations representing 10.12% and cash flow from the sale representing 89.88% 15.29%…

Rental income A woman has $500,000 invested in two rental properties. One yields an annual return of 10% on her investment, and the other returns 12% per year on her investment. Her total annual return from the two investments is $53,000. Let x represent the amount of the 10% investment and y represent the amount of the 12% investment. (a) Write an equation that states that the sum of the investments is 500,000 dollars. (b) What is the annual return on the 10% investment? (c) What is the annual return on the 12% investment? (d) Write an equation that states that the sum of the annual returns is 53,000 dollars. (e) Solve these two equations simultaneously to find how much is invested in each property.

need help with A only. The answer to B is 7.8%please help asap

QUESTION 2 You would like to purchase a home and are interested to find out how much you can borrow. When your lender calculates your debt to income ratio, he determines that your maximum monthly payment can be no more than $2,500. You would like to have a 30 yearfully amortizing loan and the interest rate offered on such a loan is currently 6%. Given these constraints, what is the largest loan you can obtain?

Rental income A woman has $500,000 invested in two rental properties. One yields an annual return of 10% on her investment, and the other returns 12% per year on her investment. Her total annual return from the two investments is $53,000. Let x represent the amount of the 10% investment and y represent the amount of the 12% investment. (d) Write an equation that states that the sum of the annual returns is 53,000 dollars. (e) Solve these two equations simultaneously to find how much is invested in each property.

A real estate property is on the market.  You have estimated it will give you net cash flows of $5136 per month.  You hope to sell it in 9 years for $308182. Your required return is 9.46%, how much should you be willing to pay for the property today?  Answer:

9. Choosing a real estate investment Aa Aa Comparing Real Estate Investments Suppose Vicky wants to invest in real estate and is considering two different residential properties. Based on the expected incomes and operating expenses of each, she estimates that the first property (property A) has an NOI of $43,000 and that the other (property B) has an NOI of $32,000. If the cap rate is 9%, property A has an estimated value of and property B has an estimated value of In deciding between these two properties, it is important for Vicky to consider other factors. For instance, in general, only seasoned investors should invest in property. Alternatively, Vicky might want to consider investing in a real estate investment trust (REIT), a type of investment company that operates similarly to mutual fund. Which of the following statements regarding REITS are true? Check all that apply. They pay dividends. They can increase the diversification of individuals who are already invested in the stock…

Please solve correctly using the formula for ROI

You plan to purchase a house with the following information. Calculate the interest on the 127th payment. Price Years Down Payment Rate Payment Interest in 127th Payment Year Price Rate Down Payment $100,000.00 You plan to purchase a house using the following information. What is the dollar difference between the total interest paid for both mortga Total Interest Difference 30 20% 4.5% 30 $200,000 6.25% $40,000 15 $200,000 4.00% $40,000

An investor is looking for a loan for an investment property that he has found. He can afford a monthly payment of $1,475. The interest rated quoted to him was 7.25%. He built the following table from that information. A $74,049 $125,638 $161,580 t 5 10 15 a) A(5) = b) If the investment property cost $161,580, how many years must the investor make monthly payments? t 20 25 30 A $186,620 $204,066 $216,220

Based on the information below, if Jason starts saving immediately for the down payment on his house, how much additional money will he have to save each month? Assume an investment rate of return of 5% per year (please enter the numeric value round to the nearest dollar). Cost of house Years till purchase Expected inflation rate Inflation-adjusted cost of house Required 10% down-payment Investment yield $500,000 3% 5.00% 2