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- A farmer sows a certain crop. It costs $240,000 to buy the seed, prepare the ground, and sow the crop, In one year's time it will cost $123,200 to harvest the crop. The farmer's best estimate is that the crop will be worth $380,000 in one year. The farmer can borrow and lend at an interest rate is 7%. Part B) The farmer is concerned about the uncertainty surrounding the price that she will receive for her harvested crop in one year. She has the opportunity to enter into a forward agreement whereby she can lock-in a sale price of $405,000 for her harvested crop in one year, thus eliminating any uncertainty. The cost entering into this contract is $23,500, payable today. Should the farmer enter into this forward agreement and lock-in the sale price of her harvested crop? O A. Yes, she should enter into this agreement. O B. No, she should not enter into this agreement,Solve the problem with complete solution. 9. You plan to buy a house and lot through home loan from a bank. The selling price is 1,800,000 and the bank requires a down payment of 20% of the selling price. How much is the down payment?You are assiting a newly hired employee. You begin explaning the process of utilizing excel to finance properties. Consider the following. A realator has a house on sale for $640,000. If possible you believe you can finance the home for $300,000 for 20 years at a 3% interest rate. What would the monthly principle and interest payment be for the acquird loan? Calculate using the PV funtion in excel. How would you caluclate this in Excel using the PV function? Rate: Nper: Pmt: FV: Type:
- This question has multiple parts. A farmer sows a certain crop. It costs $240,000 to buy the seed, prepare the ground, and sow the crop. In one year's time it will cost $123,200 to harvest the crop. The farmer's best estimate is that the crop will be worth $380,000 in one year The farmer can borrow and lend at an interest rate is 7%. Part A) The net present value (NPV) of the farmer's decision to proceed with this investment is closest to which of the following? O A. $240,000 O B. $595,140 O C. $115,140 O D. $0You have saved $14000 for a down payment on a house. Your bank requires a minimum down payment of 13%. What is the maximum price? You can offer for a home in order to have enough money for the down paymentThe Browning family of Colorado wants to buy a $102,000 house. (a) If they can get a loan of 80% of the value of the house, what is the amount of the loan?$ (b) What will be the down payment on this loan?$ (c) If they decide to obtain an FHA loan, what will be the minimum cash investment? (Do not forget that the maximum FHA loan for this location has to be determined using the FHA Maximum Loan Values by State table.)$
- I am flipping a house I plan to sell in 45 days but I need $40,000 to finish it. What kind of loan should I look for? why ?Solve please will all steps without excel. A loan of 45,000 SR is to be financed to assist in purchasing a new home. The loan must be repaid based on monthly compounding, in a single payment of 65,000 SR to be made 60 months from today. What is the nominal interest rate being charged?A public relations specialist earns $71,500 salary each year. He/she wants to spend no more than three times his/her salary on a house. What is the maximum price of a home that he/she can afford?A. If a 20% down payment is required, what is the amount financed?B. If he/she buys a home for the maximum he/she can afford, what is the monthly mortgage payment for a 25 year fixed interest loan at 3.25% compounded monthly?C. How much will he/she pay in over the 25 year loan?D. How much will he/she pay in interest over the 25 year loan?
- You are thinking of buying a house beside the College which you will rent to students. You expect to receive $1,125 a month in rental income. Your real estate agent estimates that you will be able to sell the property for $225,000 at the end of 24 months. You'd like a return of at least 0.4% per month. What is the most that you should pay for the house, assuming that you will purchase the house today and receive the first (beginning of month) rental payment today. What is the most that you should pay for the property today? (Round to the nearest dollar.)please help meURGENT!!!