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Ted and his partners have contracted to purchase the franchise rights, worth $73,000, to open and operate a specialty pizza restaurant called Pepperoni's. With a renewable agreement, the partners have agreed to make payments at the beginning of every month for five years. To accommodate the renovation period, Pepperoni's corporate office has agreed to allow the payments to start in one year, with interest at 11.42% compounded annually. What is the amount of each payment?
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- ted and his partners have contracted to purchase the franchise rights, worth $60000, to open and operate a specialty pizza restaurant called Pepperoni's. With a renewable agreement, the partners have agreed to make payments at the beginning of every three months for two years. To accommodate the renovation period, Pepperoni's corporate office has agreed to allow the payments to start in one year, with interest at 11.45 % compounded annually. What is the amount of each payment?Mark and his partners have contracted to purchase the franchise rights, worth $123,000, to open and operate a specialty pizza restaurant called Pepperoni's. With a renewable agreement, the partners have agreed to make payments at the beginning of every six months for five years. To accommodate the renovation period, Pepperoni's corporate office has agreed to allow the payments to start in one year, with interest at 14.36% compounded annually. a) What is the future value of the franchise after the deferral period? b.) What is the size of the payment required?Mark and his partners have contracted to purchase the franchise rights, worth $146,000, to open and operate a specialty pizza restaurant called Pepperoni's. With a renewable agreement, the partners have agreed to make payments at the beginning of every six months for five years. To accommodate the renovation period, Pepperoni's corporate office has agreed to allow the payments to start in one year, with interest at 14.96% compounded annually. a.) What is the future value of the franchise after the deferral period? b.) What is the size of the payment required? Next page
- A property owner has set up a contract in which he agrees to sell a warehouse 5 years from now to the tenant who currently leases the space. The tenant has agreed to continue to pay $20,000 in rent at the end of each year, including year five, at which time he will purchase the building for an additional $1,500,000. Assuming the required rate of return on a similar investment is 10% (annual), how much is this deal presently worth to the original owner of the property? $1,014,779.2 $1,007,197.20 $2,281,452.80 $2,293,663.00AD Construction, a property developer, is building a property complex consisting of 50 apartments. Apartments are similar in size and proportion - however, can be adapted to suit client needs. AD Construction enters into a contract with customer A. The client wants to buy an apartment and agrees to a total price of CU100,000 per apartment. The payment schedule is as follows:- After signing the contract, clients pay a deposit of CU 10,000 each.- Milestone: 1 year before the planned completion, AD Construction will send a progress report to the client and the client will have to pay CU 50,000 each.- Completion: After construction is completed, the legal ownership of the apartment is transferred to the client and they pay the remaining amount of CU40,000 each. The assumed construction period is 2 years from the contract date. AD Construction has the right to withhold payment from any client in the event that that client fails to pay for the contract prior to its completion. There is no…AD Construction, a property developer, is building a property complex consisting of 50 apartments. Apartments are similar in size and proportion - however, can be adapted to suit client needs. AD Construction enters into a contract with customer B. The client wants to buy an apartment and agrees to a total price of CU100,000 per apartment. The payment schedule is as follows: After signing the contract, clients pay a deposit of CU 10,000 each. Milestone: 1 year before the planned completion, AD Construction will send a progress report to the client and the client will have to pay CU 50,000 each. Completion: After construction is completed, the legal ownership of the apartment is transferred to the client and they pay the remaining amount of CU40,000 each. The assumed construction period is 2 years from the contract date. AD Construction has the right to withhold payment from any client in the event that that client fails to pay for the contract prior to its completion. The contract…
- onca Co. is looking for financing to expand its laboratory and buys a patent for a new technology which it's going to use for the next 10 years. Ronca Co. agrees to pay $70,000 for the patent. Instead of paying cash for the patent, Ronca Co. issues a note for $100,000, which is payable in five annual installments of $20,000 each. Ronca Co. pays the seller $20,000 on the day of the contract signing. Which of the following is the amount of debt Ronca Co. is going to record in its accounting? A $20,000 B $80,000 C $100,000 D $70,000The Flemings secured a bank loan of $344,000 to help finance the purchase of a house. The bank charges interest at a rate of 5%/year on the unpaid balance, and interest computations are made at the end of each month. The Flemings have agreed to repay the loan in equal monthly installments over 25 years. What should be the size of each repayment if the loan is to be amortized at the end of the term? (Round your answer to the nearest cent.)The Flemings secured a bank loan of $280,000 to help finance the purchase of a house. The bank charges interest at a rate of 3%/year on the unpaid balance, and interest computations are made at the end of each month. The Flemings have agreed to repay the loan in equal monthly installments over 25 years. What should be the size of each repayment if the loan is to be amortized at the end of the term? (Round your answer to the nearest cent.)The Flemings secured a bank loan of $280,000 to help finance the purchase of a house. The bank charges interest at a rate of 3%/year on the unpaid balance, and interest computations are made at the end of each month. The Flemings have agreed to repay the loan in equal monthly installments over 25 years. What should be the size of each repayment if the loan is to be amortized at the end of the term? (Round your answer to the nearest cent.)The Flemings secured a bank loan of $280,000 to help finance the purchase of a house. The bank charges interest at a…
- Mario has agreed to purchase his partner’s share in the business by making payments of $1200 every three months. The agreed transfer value is $17 850, and interest is 9.5% compounded annually. If the first payment is due at the date of the agreement, what is the size of the final payment?A contractor bought an asphalt plant from a commercial bank for a certain amount, and the two parties agreed that the contractor would pay an amount of (2) upon signing the contract as an advance, provided that he would pay ten equal annual installments of the value of each payment (0.5) and with an interest of (8%). The first installment starts to be paid at the beginning of the year The fifth is from signing the contract, so what is the value of the factory? And when the payment date came, he persuaded the bank management to postpone the payment (6 years), provided that the interest during this period is (12%), so what is the value of the new installments? After paying two installments, he decided to pay the remaining amount in full when the third installment is due. How much will he pay?An investor is considering purchasing an office building for $5 million with the intention of renting it out. Six months after purchase the investor will spend $0.5 million on necessary refurbishments and improvements. A tenant has agreed to lease the building in one year's time for 20 years. The tenant will pay an initial rent of $0.75 million per annum payable monthly in advance. The rent will be increased at four-yearly intervals at a rate of 2.0% per annum compound. It has further been agreed that at the end of the lease period the tenant will buy the building from the investor for $10 million. Which of the following is the accumulated profit the investor will have made at the end of the term using a rate of return on its investment of 6.0% per annum effective? O $22,889,114.62 O $23,120,505.81 O $23,180,097.78 O $23,275,395.38 O $23,413,623.89 O $23,430,787.98 O $23,569,942.54 O $23,586,683.6 O $23,726,768.86 O $23,785,620.07
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