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

A: Down Payment: It is amount of cash that a purchaser pays in the beginning phases of buying  an…

Q: rent

A: Cost of the property refers to the expense which includes the purchase price of an asset and its…

Q: In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an…

A: A mortgage refers to a loan availed against the purchase of real estate which includes a house,…

Q: Gene bought a living room suite for 85,000 pesos. He agreed to pay in 5 months at 12% simple…

A: Simple Interest formula is Future value = Principle * (1 + Rate * Time)

Q: A woman paid $98,000 down for a house and agreed to pay 18 quarterly payments of $4,100 each. If…

A: The present value of an annuity is the current worth of a series of cash flows at a certain rate of…

Q: . M acquired a small lot in a subdivision, paying P20,000 down and pledge to pay P1,500 every 3…

A: Here, Down Payment is P20,000 Quarterly Payment (PMT) is P1,500 Time Period (n) is 10 years Interest…

Q: A purchased a small condominium. He paid P350,000 as a down payment and agreed to pay P35,000 every…

A: Down payment = P350,000 Quarterly payment = P35000 Interest rate = 12% Quarterly interest rate =…

Q: Your father purchased a townhouse with a cash price of 1.5M. He was able to negotiate with the…

A: We need to use present value of annuity formula given below to calculate monthly payment amount…

Q: new house for $ 120,000. He was able to make a down payment equal to 25% of the value of the house;…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

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: A has been paying rent of $850 at the beginning of each month for the last 12 years. If he had…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: Polly purchased a car. She paid ₱150,000.00 as down payment, and ₱5,500.00 payable at the beginning…

A: a) Periodic Rate = Annual Rate / 12

Q: Blake bought a new car and financed $⁢15,000 to make the purchase. He financed the car for 48 months…

A: MONTHLY PAYMENT FORMULA: PMT=P×rm1-1+rm-nwhere,p = loan amountr = APRm = frequency of compoundingn =…

Q: Bobby Sue’s landlady has agreed to sell her the house she is renting for $260,000 in 4 years. Her…

A: Future Value of Annuity = PMT [((1 + r)n - 1) / r] r = periodic rate n = number of periods PMT =…

Q: you live in the mobile home for four years, but your roommate also pays you $3,000 a year, paid to…

A: Present Value: The worth of the cash flow or stream of payments that would be received in the future…

Q: Mariam is currently renting an apartment for R.O.725 per month and paying R.O.275 annually for…

A: Lease- Lease agreements are contracts or instruments that transfer property from one person to…

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

A: Present value of annuity is current value of the future annuity flow.

Q: In order to buy a new car, you finance $33,000 with no down payment for a term of five years at an…

A: Here, Cost of Car is $33,000 APR is 6% Time Duration of loan is 5 years Compounding Period is…

Q: In order to buy a new car, you finance $24,000 with no down payment for a term of five years at an…

A: Given, Amount of finance with no down payment  = $24000 Given that APR   = 6% The  value of the car…

Q: After you purchase the house, you decide to do some remodeling in the kitchen.  You ask your parents…

A: The simple interest refers to the interest on the principal amount only. There is no compounding…

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: In order to buy a new car, you finance $20,000 with no down payment for a term of five years at an…

A: Given, Loan Amount  = $20000 APR   = 6% time  (n)  = 5 years = 5   Value of car had decreased by 25%…

Q: Five years ago, Diane secured a bank loan of $400,000 to help finance the purchase of a loft in the…

A: Excel Spreadsheet: Excel Workings:

Q: A couple purchased a home 20 years ago for $200,000. The home was financed by paying 10% down and…

A: Solution Concept When the down payment is made on the loan such down payment shall reduce the…

Q: Sergio purchased a house for $440,000; he paid $44000 as a down payment and financed the balance…

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

Q: A property that costs $550,000 is purchased at a financing margin of 75%. Compute the amount of down…

A: The amount of down payment paid at the time of purchased is $137,500 Loan Amount=Purchased…

Q: When Jimmy and Jamie bought their home, they had a 4.2% loan with monthly payments of $978.03 for 30…

A: Answer $200,000 at 4.2% interestwith 360 monthly paymentsTotal Payments = $352,090.69 Total Interest…

Q: Peggy made a down payment of $400 toward the purchase of new furniture. To pay the balance of the…

A: Purchase price of the furniture is present value of monthly payments plus down payments

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

A: A mortgage is a loan on a property where the property itself is used as collateral in case of…

Q: You decide to purchase your own property. The estimated purchase price is $1,600,000. You obtain 90%…

A: given, price = $1600,000 financing obtained=90% rate (r)= 7% years (n) =25%

Q: Katie bought a house in 2000 for $300,000. She put 10% down and then financed the remaining balance…

A: EMI = P×r×(1+r)n(1+r)n-1 where; P = Principal = $300,000*90%= $270,000 r = rate of interest = 7.25…

Q: Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance…

A: Using excel NPER and PMT function

Q: Mrs. Jenny bought an upper-class lot costing 1.23 Million $. The car agency asked for a downpayment…

A: Cost of upeer class lot is 1.23 million $ Downpayment is $320,200 Payment after one year is $624,400…

Q: The van dusens have a combined net annual income of $65,000. They have savings of $37,000. Non…

A: There is need of savings after doing all expenses because you have to save for the future for…

Q: Ancog purchased a parcel of land somewhere in Brgy Tignapoloan. She paid P150,000 for the down…

A:

Q: The Cooks bought a $233,000 house. They made a down payment of $48,000 and took eut a mortgage for…

A: Given:

Q: A woman paid $92,000 down for a house and agreed to pay 18 quarterly payments of $4,200 each. If…

A: Given:

Q: Shane was receiving rental payments of $3,000 at the beginning of every month from the tenants of…

A: Solution:- When an equal payment is made each period at beginning of the period, it is called…

Q: Carlos purchased a house for $230,000; he paid $11500 as a down payment and financed the balance…

A: Value of House is $230,000 Down Payment is $11,500 Therefore, Loan Amount is : =$230,000-$11,500…

Q: Kathy wants to buy a condominium selling for $95,000. The taxes on the property are$1500 per year,…

A: As per the guidelines, the solution for the first four parts will be given. If you want answers to…

Q: A couple wants to purchase a $170,000 house, and they have enough saved for a 5% down payment and…

A: Given:

Q: mith is shopping for a used luxury car. He has found one priced at $27,000. The dealer has told Tim…

A: The given problem can be solved using PMT function in excel. PMT function computes instalment amount…

Q: A couple bought a business to rent apartments near St Clair's College in North York. They purchased…

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

Q: Carlos purchased a house for $230,000; he paid $11500 as a down payment and financed the balance…

A: interest is difference between payment paid and loan amount.

Q: A land surveyor just starting in private practice needs a van to carry crew and equipment. He can…

A: Equivalent Annual Cost  (EAC): It is the annual cost of owning and maintaining an asset. It will be…

Q: When Florio and Rhoda bought their home, they borrowed $200,000 for 30 years at 6%, compounded…

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

Q: The Colemans bought a s234,000 house. They made a down payment of $41,000 and took out a mortgage…

A: Mortgage:  A mortgage could be a contract between you and a lender that gives the lender the proper…

Q: Cathy borrowed $24,000 to buy a new car and expects to pay $400 per month for the next 3 years to…

A: Compound interest is also interest on interest that is the interest which is accumulated on the…

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.