You own a house that you rent for $1,700 per month. The maintenance expenses on the house average $320 per month. The house cost $243,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $265,000. If you sell the house you will incur $21,200 in real estate fees. The annual property taxes are $3,700. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?

Q: The Perrys bought a S241,000 townhome. They made a down payment of $42,000 and took out a mortgage…

A: To buy expensive and large ticket items like a house or a car we usually take loans. These loans are…

Q: You own a stock portfolio invested 25 percent in Stock Q, 15 percent in Stock R, 10 percent in Stock…

A: Portfolio beta will be reflective of the systematic risk of the portfolio and it cannot be…

Q: xplain what is meant by the term ‘financial distress’. If we assume that financial distress exists,…

A: Explain what is meant by the term ‘financial distress’ Answer: Meaning of  'Financial distress' -…

Q: minimum price Hank would need to receive for his car

A: SOLUTION: Loan amount = $20,000 Interest Rate = 9% Time period = 5 years PV=FV(1+i)n Loan Amount…

Q: The Bourassas decide to sell a home for $410,000. They are charged a real estate commission of 7% of…

A: given  Sale Price : 410000 Commission 7% title insurance that is 1.6% of the selling price, and an…

Q: Nate agreed to pay $550,000 for a house. He made a $125,000 down payment and financed the balance…

A: We need to use loan amortization formula below to calculate monthly payment PMT =P*i1-1(1+i)n where…

Q: Davie bought his home several years ago with a 30-year fixed rate mortgage at an interest rate of…

A: A mortgage is a covered loan where the borrower is given a loan in exchange for keeping the property…

Q: Alan Frost purchased a new split-level home for $170,000 with 20% down. He decided to use Victory…

A: Data given: Cost of new split level home  = $ 170,000 Down payment =20% Rate (r) = 4.75% n= 25 years…

Q: The Bourassas decide to sell a home for $480,000. They are charged a real estate commission of 8% of…

A: A real estate commission is a fee paid to a real estate broker or agent for their services in…

Q: Maria is a wedding planner. She purchases a laserjet printer for invitations, save-the-date…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Alex and Steve bought their current house 10 years ago for $355,000 and made a down payment of…

A: EAR = ((1+ r/n)^n) - 1 APR = (((1+EAR)^(1/n)) - 1) x (n)   Monthly Payment = Loan/ Monthly…

Q: Art Neuner, an investor in real estate, bought an office condominium. The market value of the condo…

A: The monthly rents that the builder should charge from the tenants includes all the monthly expenses…

Q: and has depreciation of $360,000.

A: Calculate the Net Operating Income (NOI) NOI = Net Income - Interest Expense - Taxes +…

Q: A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on…

A: A mortgage is a loan on a property where the collateral is the property itself.

Q: Jeffersons are considering selling their current residence, buying a small home near Avery’s parents…

A: Mortgage loans are very common when buying homes and these secured loans against home as collateral…

Q: A couple found a house selling for $115.500. The taxes on the house are $1400 per year, and…

A: Down payment is the amount which needs to be given on the total cost of the house. It is a…

Q: You own a home with a market value of $100,000. you bought the home for $150,000 ten years ago. your…

A: Every homeowner has a liability to pay taxes on their property to the government. The rate of the…

Q: What is the dollar amount of the tax credit

A: A tax credit refers to a dollar for dollar reduction of the income tax owed.

Q: A couple found a house selling for $114, 500. The taxes on the house are $1300 per year, and…

A:

Q: Maria is a wedding planner. She purchases a laserjet printer for invitations, save-the-date…

A: Fixed assets: These are the assets which were used in the business for more than one year. These…

Q: Some time ago. Tracie purchased two acres of land costing $67,900. Today, that land is valued at…

A: We need to use the concept of time value of money to solve the question. We will use the formula of…

Q: ia Ma purchased a condominium 5 years ago for $160,000, paying $1,174.75 per month on her $146,000,…

A: To determine whether Jia Ma should refinance her mortgage under the specified terms, we need to…

Q: A couple found a house selling for $113,500. The taxes on the house are $1400 per year, and…

A: Here,

Q: A home improvement firm has quoted a price of $9,800 to fix up Eric's backyard. Five years ago, Eric…

A: Answer : Present value = $7,500 Interest rate = r = 5.25% yearly Time = 5 years Future value =…

Q: They are considering trading their car in for a newer used vehicle so that Harry can have dependable…

A: A loan is a contract where a sum of money is forwarded in exchange for a promise of future repayment…

Q: The Tomlinsons decided to sell their home for $355,000. They are charged a real estate commission of…

A: To find out the amount the Tomlinsons receive after fees, we need to subtract the total fees from…

Q: Mr. John wishes to open a new barber shop: he paid for the permits and certifications of $8,000…

A: Salvage value is the value realised on sale or winding up of a business after the business decides…

Q: The Bourassas decide to sell a home for $460,000. They are charged a real estate commission of 8% of…

A: Value of house = $460,000 real estate commission = 8% Title insurance = 1.2% escrow fee = $875

Q: What should you do if you own a piece of land that you bought 5 years ago for $50,000. The tax rate…

A: Present value: Provided a fixed rate of return, it is the current value of the potential amount of…

Q: A prospective homeowner knows that the monthly mortgage payment on a house that is for sale will be…

A: A property tax, also known as a millage rate, is ad valorem tax on any property's value.

Q: The Gooseberry family purchase a $257,000 house and must sell their old home in order to make a 20…

A: A bridge loan is a short-term financing option used as interim financing until a person or company…

Q: While buying a new car, Austin made a down payment of $1,000.00 and agreed to make month-end…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: You own a house that you rent for $1,400 per month. The maintenance expenses on the house average…

A: Market value of property is the value at which property can be sold immediately without any much…

Q: While buying a new car, a down payment of $1,20 agreed to make month-e of $300.00 for the next 4…

A: Vehicle are purchased by paying by small amount of down payments and remaining payments are made by…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.