Round dollar amounts to TWO decimal places.John leases a car priced at $24,822 with a contract that requires start-of-week payments of$65.95 for 2 years at 2.41% compounded weekly.a) What is the residual value of the car at the end of the lease?ModeN=ListenPV =NNb) How much will John pay in total for leasing the car (without the residual value)?Total paid-AFV=

Loans are paid by the periodic payments and these payments are fixed and these carry the payment for…

Answered: Round dollar amounts to TWO decimal…

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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An investor buys a property for $665,000 with a 25-year mortgage and monthly payments at 8.5% APR. After 18 months the investor resells the property for $730,998. How much cash will the investor have made from the sale, once the mortgage is paid off? O A. $109,650 O B. $62,657 O C. $156,642 O D. $78,321
Annuity due. Reginald is about to lease an apartment for 30 months. The landlord wants him to make the lease payments at the start of the month. The monthly payments are $1,300 per month. The landlord says he will allow Reg to prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is $33,886. What is the implied monthly discount rate for the rent? If Reg is earning 1.5% on his savings monthly, should he pay by month or make the one-time payment? What is the implied monthly discount rate for the rent? % (Round to two decimal places.)
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QUESTION 15 Ann buys a property that costs $1,000,000. She finances the purchase with a 70% LTV mortgage. She gets a 20 year interest only fixed rate mortgage at an annual interest rate of 5%, with annual compounding and annual payments. Ann must pay 2 points upfront in mortgage closing costs (as a % of the loan amount). The loan has a 5/4/3/2/1 prepayment penalty structure (she must pay a 5% penalty if she prepays at any time in the first year, 4% penalty in the second year, etc). Suppose Ann will sell the property during year 3, after she makes the 3rd year's mortgage payment and pays off the balance when she sells. What is Ann's annualized IRR for the loan? A. 5.74% B. 6.69% C. 5.10% D. 5.00%
Plz answer all four subparts..bcz I can't put only three subparts.. thank u
3. Lease Analysis You have an office building with a 25,000 sf vacancy. You have two proposals: Tenant A 25,000 Starting Base Rent $48.00 NNN Size Annual Increases: Term: Free Rent: TI Allowance: 3% 10 years 4 months (Base Rent only) $100 psf Tenant B 25,000 $40.00 NNN $1.00/sf/yr 10 years None $25 psf Start Date: 10/1/2024 10/1/2024 Assume there is no parking revenue or moving allowances and that first year opex is $16.00 psf. Also pls assume commissions are $1/sf/yr for outside broker and $0.50/sf for inside broker. Using the lease analysis tool, please calculate the NPV for each. If the owner was considering selling the building in 3 years, please calculate the Capitalized Lease Value psf; assume a 7% cap rate If the owner is a long term holder, which lease would they prefer? If they prefer to sell after 3 years, which would they prefer? Why?
Lian took a $85,000 loan at 2.91% compounded monthly and decided to make end of month payments of $2,392. 1) How many payments will Lian have to make to amortize this loan? (rounded to the next higher whole number) 2) What will the size of his final payment be? $ (enter a positive value)
William and Catherine are considering an offer for a piece of property which receives a monthly lease of $ 8411 due at the beginning of each month. If money is worth 14.8% compounded quarterly, what is a fair offer? a. $698727.07 b. $513311.62 c. $528211.73 d. $678861.78 e. $691974.19
Annuity due. Reginald is about to lease an apartment for 24 months. The landlord wants him to make the lease payments at the start of the month. The monthly payments are $1,000 per month. The landlord says he will allow Reg to prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is $22,176. What is the implied monthly discount rate for the rent? If Reg is earning 0.5% on his savings monthly, should he pay by month or make the one-time payment?
Annuity due. Reginald is about to lease an apartment for 36 months. The landlord wants him to make the lease payments at the start of the month. The monthly payments are $1,400 per month. The landlord says he will allow Reg to prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is $45,478. What is the implied monthly discount rate for the rent? If Reg is earning 0.4% on his savings monthly, should he pay by month or make the one-time payment? What is the implied monthly discount rate for the rent? % (Round to two decimal places.)
Q6: Ethan secured a 4-year car lease at 6.20% compounded annually that required her to make payments of $888.30 at the beginning of each month. Calculate the cost of the car if she made a downpayment of $3,750.Round to the nearest cent

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