um.3 An investor buys a property for $672,000 with a 25-year mortgage and monthly payments at 8.3% APR. After 18 months the investor resells the property for $738,248, How muchcash will the investor have made from the sale, once the mortgage is paid off?OA. $110,737OB. $158,196OC. $63,278OD. $79,098COCIT

Mortgage: With a mortgage, you provide the lender the right to seize your property in the event that…

Answered: An investor buys a property for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A buyer has a 30 year 7.5% loan for 90% of the appraised value on property that appraised for $140,000 , but also sold $150,000. what is the interest portion of the first payment?? a.$787.50 b.$843.75 c$875.00 d.$1,068.75
Ife takes out a 3 year mortgage for $1,125,000 at an interest rate of i(2) = 4.500%. The amortization period is 30 years and she will make weekly payments. What is the outstanding balance at the end of 1 year? O a. $1,084,582.78 O b. $1,106,717.12 O c. $1,029,246.92 O d. $1,040,314.09 e. $1,128,851.46
An investor purchased an apartment building that generates $200,000 in annual net operating income. The apartment was purchased for $2,500,000. The investor expects to receive $75,000 annually, and a 10.0% return on equity. What is the mortgage capitalization rato? OA.6.75% OB.7.14% OC.7.31% D.8.14%
An investor buys a property for $670,000 with a 25-year mortgage and monthly payments at 8.8% APR. After 18 months the investor resells the property for $737,137. How much cash will the investor have made from the sale, once the mortgage is paid off? OA. $110,571 OB. $157,958 OC. $78,979 OD. $63,183
You are buying your first condo for $250, 000 and you will make a $50, 000 down payment. You have arranged to finance the remainder with a 30 year, monthly payment, amortized mortgage at a 2.25% nominala. $838.52 b. $850.48 c. $764.49 d. $517.3 e. $1040.1
Assume a $900,000 property is purchased with a 70% loan to value ratio. The mortgage is written at j1 = 6%, with annual payment over a 15-year amortization, period. The annual NÓI of the property is $75,000. What is the before tax equity return of this investment а. 7.5% b. 4.65% с. 5.32% d. 3.75%
The vendor of a property agrees to take back a $200,000 mortgage at a rate of 4.5% compounded semiannually with monthly payments of $900 for a twenty-year term. Calculate the market value of the mortgage if financial institutions are charging 6.5% compounded semiannually on twenty-year term mortgages. A) $129,239.43 OB) $124,604.43 OC) $122,539.43 OD) $121,979.43 E) $121,539.43
What is the value accumulated at the end of 30 years if $300 deposited at the end of each month in a mutual fund account that earns 12 percent annually during the period. Ans. A mortgage calls for monthly payments of $970.30, including interest at 7.6 percent. The current value of the mortgage is $95,258.72. Approximately how long will it take to fully amortize the mortgage? Ans. An income-producing property is priced at $550,000 and is expected to generate the following after-tax cash flows: Year 1: $50,000; Year 2: $55,000; Year 3: $60,000 and $600,000. Calculate the annual IRR for this investment opportunity. Ans.
JG Asset Services is recommending that you invest $1,050 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures? a. $1,247.07 b. $1,274.67 c. $1,283.87 d. $1,265.47 e. $1,256.27
Assume an elderly couple owns a $400,000 home that is free and clear of mortgage debt. A reverse annuity mortgage (RAM) lender has agreed to a $300,000 RAM. The loan term is 15 years, the contract is 5.25%, and payments will be made at the end of each month. What portion of the loan balance at the end of year 15 represents interest (rounded to thousands)? Excel a) $95,000 O b) $102,000 O c) $174,000 d) $198,000 e) $205,000
Assume an elderly couple owns a $400,000 home that is free and clear of mortgage debt. A reverse annuity mortgage (RAM) lender has agreed to a $300,000 RAM. The loan term is 15 years, the contract is 5.25%, and payments will be made at the end of each month. What portion of the loan balance at the end of year 15 represents interest (rounded to thousands)? Excel a) $95,000 Ob) $102,000 c) $174,000 d) $198,000 e) $205,000
10. Curtis bought a condominium for $319 000 and made a down payment of $64 000. The annual interest rate for a five-year fixed rate mortgage is 5,49%. Determine the monthly payment for a 20-year amortization period. a. $1743.79 b. $7090.21 c. $2181.46 d. $1120.84 nount

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An investor buys a property for $672,000 with a 25-year mortgage and monthly payments at 83% APR. After 18 months the investor resells the property for $738,248 How much cash will the investor have made from the sale, once the mortgage is paid off? OA. $110,737 OB. $158,196 OC. $63,278 OD. $79,098