You are a real estate owner in Bloomington Indiana and you have rented a house to students. You expect to make 9% per year on this leasehold nvestment. The terms of the lease are $2800/month for 24 months and the rent is due at the beginning of the month. Your savvy renters are Kelley students and they request that the rent be paid, instead, at the end of the month. How much more valuable is the lease contract to you if payments are made at the beginning of the month rather than the student's proposed payments at the end of the month? Multiple Choice C $2446.07 $459.67 $162.67 $1408.49 $1800

You are a real estate owner in Bloomington Indiana and you have rented a house to students. You expect to make 9% per year on this leasehold nvestment. The terms of the lease are $2800/month for 24 months and the rent is due at the beginning of the month. Your savvy renters are Kelley students and they request that the rent be paid, instead, at the end of the month. How much more valuable is the lease contract to you if payments are made at the beginning of the month rather than the student's proposed payments at the end of the month? Multiple Choice C $2446.07 $459.67 $162.67 $1408.49 $1800

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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The Financial Advisor is a weekly column in the local newspaper. Assume you must answer the following question. "I need a new car that I will keep for 4 years. I have three options. I can (A) pay $32,999 now, (B) make monthly payments for a 7% 4-year loan with 0% down, or (C) make lease payments of $425 per month for the next 4 years. The lease option also requires an up-front payment of $3500. What should I do?" Assume that the number of miles driven matches the assumptions for the lease, and the vehicle's value after 4 years is $14,500, Remember that lease payments are made at the beginning of the month, and the salvage value is received only if you own the vehicle. Based on the provided information, the Equivalent Uniform Annual Cost (EUAC) graph with the alternatives is shown below: S600.00 S550.00 5500.00 S450.00 5400.00 S350.00 S300 00 5% 11N 13% 15% -A ---C According to the graph provided, the alternative that should not be selected is: OC O None of the above
you want to have 25000.00 in your account in ten years to go on a dream trip to austrailia. what sum of money must you deposit at the end of every 3 months if your account earns interest at 6% compounded monthly?
The Fritzes are buying a house that sells for $107,000.The bank is requiring a minimum down payment of 20%.To obtain a 40-year mortgage at 9.5% interest, they must pay 4 points at the time of closing. a) Determine the required down payment. b) Determine the amount of the mortgage on the property with the 20% down payment. c) Find the cost of 4 points on the mortgage. a) The required down payment is $ enter your response here.
Please answer only correct with explanation. I will really upvote. Thanks
You want to buy a condo in that costs 914 700 and have accumulated a 25% down payment. The remainder is financed with a 20year mortgage over 4 a year term which you have negotiated with a local financial institution. As you are a high risk borrower the best rate you can get is an APR of 7.6% compounded semi- annually with month end payments. How much would you owe the mortgage after your 48 mortgage payment?
Marisa leases a car that has a purchase price of $63,500 with an MSRP of $66,950 and decided to lease the car for 36 months. Find the monthly lease payment (in dollars) if the annual interest rate is 4.5%, the trade-in of her car was $35,000, she makes $3,000 down payment, the residual value is 35%, of the MSRP. Include a sales tax of 7.25%. Round your answer to the nearest cent.)
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.
If you buy a home with less than 20% down, you will pay an additional monthly fee, PMI (private mortgage insurance), until you reach 20% equity. Keep track of when you reach 20% equity so you can request to have your PMI removed. Ken Buckmiller’s home recently appraised at $307,000. His mortgage was for $292,000 at 5% for 30 years with PMI of $299.17 per month. What is his monthly payment plus PMI? His mortgage balance is currently $184,200. Has he reached 20% equity? (Use Table 15.1.) Note: Round your intermediate calculations and final answer to the nearest cent. The answer is NOT $1,866.63 Monthly payment:????
The Fritzes are buying a house that sells for $107,000. The bank is requiring a minimum down payment of 20%. To obtain a 40-year mortgage at 9.5% interest, they must pay 4 points at the time of closing. a) Determine the required down payment. b) Determine the amount of the mortgage on the property with the 20% down payment. c) Find the cost of 4 points on the mortgage. a) The required down payment is S

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