The annual income from a rented house is $35,000. The annual expenses are $5,000. If the house can be sold for $450,00 at the end of 15 years, how much could you afford to pay for it now, assuming 8% interest rate?

Q: If you borrowed $200,000 to buy a house at 6% interest per year, compounded annually, and paid back…

A: Given information: Loan = $200,000 Number of years = 30 Compound interest rate = 6% compounded…

Q: You invest $ 20.000 in a bank account to buy a house at annual interest rate 15 per year, compounded…

A: Given information: Present value is $20,000 Interest rate is 15% per year compounded monthly Number…

Q: Suppose you have selected a new car to purchase for $19,500. If the car can be financed over a…

A: Interest Payment: It refers to the financial or monetary charge levied on the borrowed amount.

Q: You want to buy a $23,000 car. You can make a 10% down payment, and will finance the balance with a…

A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…

Q: The annual income from an apartment house is $33,600. The annual expense is estimated to be $8000.…

A: Return on investment = 6% = 0.06 Initial investment = $349,000 Annual net income = Annual income -…

Q: The annual income from a rented house is $24,000. The annual expenses are $6,000. If the house can…

A: Given: The rate of interest = 12% The present value (PV) = $18,000 It includes 30 monthly…

Q: Rosa Burnett needs $4,000 in three years to make the down payment on a new car. How much must she…

A: Future value required for car = $4,000 Interest Rate = 2.5% Time period = 3 years

Q: A man buys a car for $36,000. If the interest rate on the loan is 12% compounded monthly, and he…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: If you borrow $35,000 to buy a car on 10 years loan at 9% annual interest rate, what is the % of…

A: The monthly payment for the loan borrowed is calculated by the present value of the annuity formula.…

Q: You invest $ 1.000 in a bank account to buy a house at annual interest rate 14 per year, compounded…

A: Present Value (Investment in bank)= $1,000 Annual Interest rate (r)= 14% per year compounded monthly…

Q: You decide to buy a house costing $6,000,000.  You pay $1,000,000 down, and the remainder will be…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Some friends tell you that they paid $26,137 down on a new house and are to pay $757 per month for…

A: Selling price of house will be aggregate of down payment and loan amount(present value of annuity…

Q: The annual income from an apartment house is $20,000. The annual expense is estimated to be $2000.…

A: Given:

Q: You want to buy a boat costing $35,000.  Your down payment is $7,000.  The remainder will be paid…

A: We have to calculate present value factor by considering monthly interest and from that we can…

Q: You buy a house for $250,000 and pay $50,000 down.  The loan is for 25 years at 6% monthly. What is…

A: Interest: it is a finance cost that charged on borrowed value for specific period.

Q: You have a client who wants to buy a house in 2 years. He needs $40,000 for a down payment. If he…

A: in this problem we have to calculate quarterly interest rate and from that we can get present value.

Q: there is a house on sale for $800,000. You believe you can finance the home for $500,000 for 20…

A: Loan amount (PV) = $ 500,000 Period = 20 Years Number of monthly payments (n) = 20*12 = 240 Annual…

Q: You bought a home for $150,000 and put down 10% and got a mortagage at an interest rate of 4.35% per…

A: We will make use of the PMT function in Microsoft Excel to determine the monthly payment on the…

Q: You took out a mortgage for $400,000. You need to pay $3,640 every month for 15 years.

A: Given, The mortgage amount is $400,000 Monthly rate is $3,640 term is 15 years

Q: You are ready to buy a house. Total price is $160,105. For the remaining part, you plan to borrow…

A:

Q: You are saving money for a down payment on a new house. You intend to place $5,000 at the end of…

A: The amount at the end of the fifth year is the future value of the payments. The future value is the…

Q: If you need P350,000 for a down payment on a house in 3 years, how much money must you invest today…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: If a person spends $10 a week on coffee (assume $500 a year), what would be the future value of that…

A: In the given question we require to compute the future value.

Q: A speculator in land and property pays $186 000 for a house that he expects to hold for 10 years.…

A: Compounding is a way to find FV of present amount by considering appropriate rate. If present amount…

Q: You want to save the down payment required to purchase a vacation home at the end of four years. If…

A: FUTURE VALUE OF ANNUITY  (FVA) FORMULA: FVA=A×1+rn-1r where, r=rate of interest n = number of years…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: John paid $25,000 down on a new house and will pay $1000 per month for 30 years. If interest is 8%…

A: Selling Price of the House = Down Payment + Present Value of monthly payments Down Payment = $25000

Q: You are thinking about buying a rental property. Because of the difficulty getting a loan, you are…

A: Given data; Initial payment = $350,000 number of years = 10 monthly received cash = $1400 selling…

Q: You buy a house for $250,000 and pay $50,000 down.  The loan is for 25 years at 6% monthly.  What is…

A: Monthly payments of loan can be calculated by Equated monthly instalment formula which is derived…

Q: To buy an $180,000 condominium, you put down $30,000 and take out a mortgage for $150,000 at an APR…

A: The calculation is:

Q: A real estate development company is planning to build five homes, each costing $195,000, in 2…

A: We need to determine the cost of 5 homes then use the periodic interest rate, number of periods to…

Q: You buy a $250,000 house and pay $50,000 down.  The loan is for 25 years at 6% monthly.  If you pay…

A: Using the PMT and NPER function in excel

Q: today on an 3-year trip during which time you will incur expenses of $40,000 at the end of each…

A: Present value of future cost is cost after reducing the interest cost from that money we can get…

Q: You buy a house for $250,000 and pay $50,000 down.  What is the monthly payment if you finance the…

A: Loan amount acquired by the borrower for financing the purchase of any financial asset is the net…

Q: A real estate development company is planning to build five homes, each costing $155,000, in 2…

A: N = Time Period = 5 semi annual periods Future Value Required = Cost of each home * Number of homes…

Q: Suppose you borrow $10,000 from your parents to buy a car. You agree to pay $208 per month for 48…

A: Here the monthly payment is a annuity and we need to find the interest rate given the following:…

Q: Suppose that 10 years ago you bought a home for $170,000, paying 10% as a down payment, and…

A: Down payment: Hence, the down payment is $17000. Mortgage loan: Hence, the mortgage loan is…

Q: You are interested in a car which costs $25,000. You have a $2000 down payment, and you have a found…

A: A loan is amortized by paying equal monthly installments comprising Principal and interest. Total…

Q: You borrowed $100,000 for a period of 30 years at fixed APR of 5.5% to buy an apartment.  What is…

A: Formula: Monthly payment = ( Present value of loan ) / [  ( 1 - ( 1 + r )-NT ) / r / n ] R =…

Q: If you borrow $1,000 and pay back $1,728 in three years, what annual rate of interest are you…

A: Annual Percentage rate (APR) is the percentage rate that shows the interest calculates on the…

Q: A condominium generates $2,000/month rent, has $350/month in associated expenses, and can be sold in…

A: Given: Rent = $2000/month Expenses=$350/month Sale price = $325000 Number of years = 3 years Number…