To complete the sale of a house, the you accept a 310-day note for $8000 at 6% simple intent (Both interest and principal are repaid at the end of the 310 days) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $8115 after 70 days What annual simple interest rate will the third party receive for the investment? Express your answer as a percentage Round to the nearest thousandths of a percent (3 decimal places)

To complete the sale of a house, the you accept a 310-day note for $8000 at 6% simple intent (Both interest and principal are repaid at the end of the 310 days) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $8115 after 70 days What annual simple interest rate will the third party receive for the investment? Express your answer as a percentage Round to the nearest thousandths of a percent (3 decimal places)

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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A builder is offering $139,371 loans for his properties at 9 percent for 25 years. Monthly payments are based on current market rates of 9.5 percent and are to be fully amortized over 25 years. The property would normally sell for $150,000 without any special financing. Required: a. At what price should the builder sell the properties to earn, in effect, the market rate of interest on the loan? Assume that the buyer would have Give typing answer with explanation and conclusion
Your uncle offers you a choice of $106,000 in 10 years or $43,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 9 percent, what is the present value of the $106,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value a-2. Which offer should you choose? $106,000 after 10 years O $43,000 today
You have a prospective lessee for your office property and have the following options (assume a 7-year window and 2% discount rate). Which one will provide you with the highest effective rent? a. Option A: Rent is $98 per rentable square foot with the lessor paying operating expenses up to $40, lessee responsible for remainder. Operating expenses are $39 in first year and increase by $3 each year b. Option B: Rent is $90 per rentable square foot and will increase by $3 each year. Operating expenses are $40 during the first year and will increase by $1 every year. c. Option C: Rent is $91 per rentable square foot per year and will increase by $2.50 each year. Operating expenses are $45 for the first year and will increase by $3 every year, with lessor covering up to $48.
On January 1 2021, you will purchase a $350,000 house. To pay for the house you will pay 20% down (in Cash) and borrow the remainder under a 30 year mortgage with a contractual interest rate of 3.35% Your market rate of interest, for the risk you pose, is 4.5% Your payments are due at the end of each month with the first payment due 1/31/2021. How much interest (rounded to the nearest dollar) will you repay during the time period of 2022-2025 ((the second through fifth year of the loan))
am. 08.
Mr. Anton received two offers for the old equipment he is selling. Mr. Brando will pay P6,500 in cash. Mr. Castilla will pay P7,000 consisting of a down payment of P1,000 and 12 monthly payments of P500. If the installment interest rate is 24% compounded monthly, which offer should Mr. Anton accept? note: Kindly show the step-by-step solution including how the present value was calculated.
Tom wishes to purchase a property that's been valued at $400,000. He has 15% of this amount available as a cash deposit and will require a mortgage for the remaining amount. The bank offers him a 15-year mortgage at 2.5% interest. Calculate the total interest Tom will pay over the lifetime of the loan. Round your answer to the nearest dollar. Do not rould until you have calculated the final answer.
Mr. Marc Pogi wish to purchase a house and lot in San Carlos City worth 2,200,000 pesos and the seller requires a 15% down payment. Then Mr. Marc Pogi will loan 6.5% monthtly interest rate to be paid for 20 years. Answer the following questions and find the unknown value needed in the amortization table below for the first 6 months of payment. Period Monthly Amortization Interest Principal Outstanding Balance 1 A? 2 3 c? 4 B? D?
9

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