**Investment Property Analysis**An investor buys a property for $691,000 with a 25-year mortgage and monthly payments at 7.4% APR. After 18 months, the investor resells the property for $756,910. How much cash will the investor have made from the sale, once the mortgage is paid off?- **A.** $64,878- **B.** $162,195- **C.** $113,536- **D.** $81,097**Time Remaining:** 00:21:08**Notes:**- This question involves calculating the profit an investor makes from real estate by considering initial costs, mortgage payments, and resale value.- Essential factors include understanding APR, mortgage amortization, and property investment strategies.- The cracked screen covering part of the display may affect visibility but does not obscure key elements of the question.**On-Screen Elements:**- The question and options are listed on the left side.- Navigation buttons appear in the bottom right corner ("Next" button visible).

A mortgage refers to a covered loan that is borrowed for the purchase of a property with the…

An investor buys a property for $691,000 with a 25-year mortgage and monthly payments at 7.4% APR. After 18 months the investor resells the property for $756,910. How much cash will the investor have made from the sale, once the mortgage is paid off? OA. $64,878 OB. $162,195 OC. $113,536 OD, $81,097

An investor buys a property for $691,000 with a 25-year mortgage and monthly payments at 7.4% APR. After 18 months the investor resells the property for $756,910. How much cash will the investor have made from the sale, once the mortgage is paid off? OA. $64,878 OB. $162,195 OC. $113,536 OD, $81,097

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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Similar questions

A house sells for $317,000 and a 5% down payment is made. A mortgage is secured at 4% for 40 years. Compute an amortization schedule for the first 3 months. Round your answers to two decimal places, if necessary. The value of the mortgage is $301,150 and the monthly payment is $1258.81.
Question Tom wishes to purchase a property that has been valued at $300,000. He has $30,000 available as require a mortgage for the remaining amount. The bank offers him a 25-year mortgage at 2% inter monthly payment. 7 Round your answer to the nearest cent. Do NOT round until you have calculated the final answer. Provide your answer below: $1476 8 5 9 6 X X X y X 30 i H *D
am. 113.
Q2.7: Morgan purchased a house for $400,000. He made a downpayment of 15% of the value of the house and received a mortgage for the rest of the amount at 5.25% compounded semi-annually for 20 years. The interest rate was fixed for a 5-year term. a. Calculate the size of the monthly payments. b. Calculate the principal balance at the end of the 5-year term. c. Calculate the size of the monthly payments if after the first 5-year term the mortgage was renewed for another 5-year term at 5.00% compounded semi-annually? Kindly keep all the decimals for all the preocedures, DO NOT ROUND
A buyer is applying for a mortgage loan of $70,000, with an annual interest rate of 12% and blended monthly payments of $722.32 including both principal and interest. The taxes on the property being mortgaged are $1900 per annum. The buyer has a gross income of $41,400 per annum. The buyer's debt service ratio is: a.20.94% b.15.10% c.25.53% d.25.78%
House Mortgage Suppose you purchase a house for $592,978 and make a down payment of 14% of the purchase price. The balance is amortized over 22 years. The house mortgage agreement is subject to 3.3479% compounded semi-annually for the first four years and requires equal monthly payments. What is the size of the equal monthly payments for the first four years? What is the house mortgage balance at the end of the four years? Perform this calculation using Excel, without an amortization schedule. After four years, the house mortgage is refinanced at a reduced nominal rate of 3.1469% compounded semi-annually and the house mortgage is amortized over the remainder of the term. What is the size of the new mortgage payments for the remainder of the term? What is the size of the final loan payment? Perform this calculation in Excel, without an amortization schedule. Prepare one complete amortization schedule showing the mortgage amortized over the full 22-year period (reflecting the change in…
A$282,000 mortgage for 25 years for a new home is obtained at the rate of 6.5% compounded monithly. Find (a) the monthly payment, (b) the interest in the first payment, (c) the principal repaid in the first payment, and (d) the finance charge. (a) The monthly payment on the mortgage is S (Round the final answer to two decimal places as needed Round all intermediate values to six decimal places as needed.)
With a selling price $100,000, a 20% down payment, and a mortgage of 12% for 25 years, calculate: A. amount of mortgage B. monthly payment C. interest portion of first payment D. Principal portion of first payment
Richard Miyashiro purchas a condominium and obtained a 20-year loan of $197,000 at an annual interest rate of 8.15%. Find the amount of interest paid on the mortgage loan over the 20 years.
Give typing answer with explanation and conclusion
None
Question 28: Assume that the compounding frequency of the provided APR is monthly

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