4.84. Consider the following advertisement seek-ing to sell a beachfront condominium at SunDestin,Florida.95% Financing 8-% interest!!8.5% Down Payment. Own a Gulf-Front Condominiumfor only $100,000 with a 30-year variable-rate mort-gage. We're providing incredible terms: $95,000 mort-gage (30 years), year 1 at 8.125%, year 2 at 10.125%,year 3 at 12.125%, and years 4 through 30 at 13.125%.(a) Compute the monthly payments for each year.(b) Calculate the total interest paid over the life ofthe loan.(c) Determine the equivalent single-effectiveannual interest rate for the loan.

Data given: Cost of condominium = $100000 Down payment = 5% of cost. Mortgage amount = $95000 Rate…

Answered: 4.84. Consider the following…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.84% interest. Suppose also that you can put down 30%. What are the monthly payments? (Round your answer to the nearest cent.) $ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.) $ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)
13. You can purchase a 10,000 square foot office building for $1,900,000. You can finance your purchase with an 80% loan at 4.675% interest, requiring monthly payments over 25 years. Rents are $24.00 per square foot and expenses are $10.00 per square foot. You project vacancy to be 12% in years 1 and year 2, 8% in year 3 then 6% thereafter. You expect that rents will increase by 6% per year for years 2 and 3, then increase by 4% thereafter. You believe that expenses willincrease at a fixed rate of 5% per year. You expect to sell the building on a 7 cap, based on the following year’s income. For a holding period of 8 years. What is the (BEFORE TAX): Before Tax IRR on Equity ? Before Tax NPV @ 12% ?
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7
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely.
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19) would love the help.
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Qualifying Scenario: Rosanne is buying a home for 900k. She has 110k in liquid assets, a 740 middle credit score, $1200 a month in revolving credit card debt and makes 200k a year. Her lender requires her to have a 90% LTV, 30/43 DTI ratios and 2 months PITI for PCL. The loan will be a 30 year fixed with a 3% interest rate. Her closing costs will be 15k. Escrows will be $1000 a month. She can buy her interest rate down by .125% by paying a half percent discount point. A .25 buy down costs 1 points and so on. She can increase her rate by .125% to get a lender credit of a half point or .25% for 1 point and so on. Does she qualify? If not, why? What can she do to qualify?
The Aikido family wants to obtain a conventional loan for 25 years at 13%. Suppose it finds a lender that will lend 95% for the $110,000 house it has selected, and its taxes and insurance amount to $1500 per year. (a) What will be their down payment on the loan?$ (b) What will be their total monthly payment, including taxes and insurance? (Round your answer to the nearest cent.)
lowing question. "I need a new car that I will keep for 4 years. I have three options. I can (A) pay $32,999 local newspaper. Assume you must answer the fol- now, (B) make monthly payments for a 7% 4-year (a) Develop a choice table for nominal interest rates from 0% to 50%. (You do not know what the Assume you must answer the fol. local newspaper. A 4 years. I have three options. I can (A) pay now, (B) make monthly payments for a 7% 4-vear loạn with 0% down, or (C) make lease payments of $425 per month for the next 4 years. The lease option also requires an up-front payment of $3500. What should I do?" $32,999 Assume that the number of miles driven matches the assumptions for the lease, and the vehicle's value after 4 years is $14,500. Remember that lease pay- ments are made at the beginning of the month, and the salvage value is received only if you own the vehicle. reader's interest rate is.) (b) If i = 8%, which option should be chosen? 8-41 The Financial Aduin
When purchasing a $100,000 house, a borrower is comparing two loan alternatives. The first loan is an 80% loan at 4% with monthly payments of $591.75 for 15 years. The second loan is 90% loan at 5% with monthly payments of $526.13 over 25 years. What is the incremental cost of borrowing the extra money assuming the loan will be held for the full term? O 6.50% O 13.21% O 7.20% O 13.70%

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