Homes in "Crystal Waters" subdivision have appreciated 5% per year for 6 consecutive years. Lily, a real estatelicensee, had a buyer purchase a home from her in this subdivision for $200,000. Lily told her buyer that shecould guarantee that the home would be worth at least $225,000 in five years from the purchase date:O Lily's statement of future value is acceptable since she had sufficient data to support itO Lily's statement is considered "puffery" and would not constitute any type of violationO Lily's statement of guaranty would possibly fall under the Oklahoma Real Estate Commission's"reasons for revocation or suspension"O Lily's statement may be contrary to acceptable standards of practice and conduct but would not bea potential conflict with any rules of the Oklahoma Real Estate Commission

There are 15 incompetence practices of real estate that could lead to possible revocation or…

Homes in "Crystal Waters" subdivision have appreciated 5% per year for 6 consecutive years. Lily, a real estate licensee, had a buyer purchase a home from her in this subdivision for $200,000. Lily told her buyer that she could guarantee that the home would be worth at least $225,000 in five years from the purchase date:

Homes in "Crystal Waters" subdivision have appreciated 5% per year for 6 consecutive years. Lily, a real estate licensee, had a buyer purchase a home from her in this subdivision for $200,000. Lily told her buyer that she could guarantee that the home would be worth at least $225,000 in five years from the purchase date:

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

I purchased a house and intend to hold the property indefinitely. I plan to rent the house to generate rent income. The first year’s rent is $15,000, and will grow it at the rate of 10% for 3 years after that. After the initial 4 years, the growth rate in the rent will stabilize at 5%. The maintenance will cost $5,000 a year. The appropriate discount rate is 20%. a. What is the present value of rent income? b. What is the present value of the house? c. What is the present value of maintenance costs?
Dean and his sister decide to begin a gardening business and will need $4000. To do so, Dean invests $800 compounded quarterly at 10% and Susan invests $1000 compounded semi-annually at 8%. How many years will it take them to accumulate the money needed for the business?
Art Neuner, an investor in real estate, bought an office condominium. The market value of the condo was $280,000 with a 80% assessment rate. Art feels that his return should be 10% per month on his investment after all expenses. The tax rate is $32.50 per $1,000. Art estimates it will cost $275 per month to cover general repairs, insurance, and so on. He pays a $140 condo fee per month. All utilities and heat are the responsibility of the tenant. Calculate the monthly rent for Art.
Five years ago, Diane secured a bank loan of $390,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 7%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 5.5%/year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to the nearest cent.) (a) What is Diane's current monthly mortgage payment? (b) What is Diane's current outstanding principal? (c) If Diane decides to refinance her property by securing a 30-year home mortgage loan in the amount of the current outstanding principal at the prevailing interest rate of 5.5%/year compounded monthly, what will be her monthly mortgage payment? (d) How much less will Diane's monthly mortgage payment be if she refinances?
A new home was purchased in Niagara Fall’s Butler Heights subdivision for $375,000 by Karen. The house is going to be financed by making a down payment of 15% and financing the balance with a conventional mortgage. The mortgage is to be amortized over 20 years with weekly payments. The rate chosen for the first four years of the mortgage is 2.79% compounded semi-annually. Show all work with formulas a) Determine the size of the weekly payments? b) What will the outstanding balance be after the first four years? c) Determine the size of the new weekly payment if after the first four year term she renews the mortgage using a fixed rate of 2.04% compounded semi-annually.
Patrick bought a new sofa and took out a loan to pay for it. The term of the loan was 4 years at 3 1/2% compounded quarterly. She knows that the amount due at the end of the term is 1149.57. What was the cost of the sofa?
A husband and wife buy a new home and take out a $100000 mortgage loan with level annual payments at the end of each year for 15 years on which the effective rate of interest is equal to 5.5%. At the end of 5 years they decide to make a major addition to the house and want to borrow an additional $70000 to finance the new construction. They also wish to lengthen the overall length of the loan by 8 years (i.e. until 23 years after the date of the original loan). In the negotiations the lender agrees to these modifications, but only if the effective interest rate for the remainder of the loan after the first 5 years s raised to 6.5%. Find the revised annual payment which would result for the remainder of the loan. ANSWER = $

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