Let us assume that an investor can obtain an 80% LTV loan for a property valued at 500,000 at a 10% interest rate to be amortized over 25 years with monthly payments. If the property generates $70,000 net operating income per year, answer the following. What is the equity dividend rate? 26.38% 15.48% 25.93% 28.56%
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- 13) A client asked the appraiser for a feasibility analysis based on equity return rates. One use provides an annual net operating income totaling $75,000. There will be a 7%, $800,000, 30-year mortgage paid monthly. The client must make $250,000 down payment and will hold the property for 20-year period. The client expects to sell the property for $458,400. What is the annual equity dividend rate? A) 13.35% B) 2.25% C) 4.45% D) 8.90%Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.You invest $4200 for a period of 7 years. At the end of 7 years your investment has grown to $7200. What is the annual rate of return on this investment? O a. 6.18% b. 10.20% O c. 8.00% O d. 71.43%
- An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? a. $1,821.82 b. $1,913.83 c. $2,297.07 d. $2,479.86 e. $2,735.85Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive Negativeyou invest $1,100,000 in equity into a property and the broker tells you that the property would produce a cash-in-cash return of 10%. it has a debt service of $85,000 annually. What is the net operating income?
- A business is planning to purchase a piece of equipment that will produce a continuous stream of income for 8 years with rate of flow f(t) = 9,000. If the continuous income stream earns 6.65%, compounded continuously, what single deposit into an account earning the same interest rate wi produce the same future value as the continuous income stream? (This deposit is called the present value of the continuous income stream.) What is the future value of the investment? $ (Round to the nearest dollar as needed.) What is the present value of the investment? (Round to the nearest dollar as needed.)If Quail Company invests $46,000 today, it can expect to receive $12,000 at the end of each year for the next seven years, plus an extra $6,400 at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1. What is the net present value of this investment assuming 12% return on investments? Need the Present Value of of an Annuity Present Value of 1, Present Value of Cash Inflows, Immediate Cash Outflows and The Net Present Value. n= 7 and i= 12%Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 1.45% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. i Click the icon to view some finance formulas. a. What is the accumulated value if the money is compounded semiannually? (Round to the nearest cent as needed.) b. What is the accumulated value if the money is compounded quarterly? (Round to the nearest cent as needed.) C. What is the accumulated value if the money is compounded monthly? S (Round to the nearest cent as needed.) d. What is the accumulated value if the money is compounded continuously? S (Round to the nearest cent as needed.)
- Mike Derr Company expects to earn 6% per year on an investment that will pay $616,000 seven years from now. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Compute the present value of this investment. Future Value Table Factor Present ValueJones expects an immediate investment of $73,759.50 to return $15,000 annually for six years, with the first payment to be received one year from now. What rate of interest must Jones eam? (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Table Factor Interest Rate Present Value Annuity PaymentAssume an investment of $100,000 is made today and is expected to earn a quoted interest rate of 9.20%. Compute the future value of the initial investment after 5 years (Column B), 25 years (Column C), and 45 years (Column D) at each compounding frequency in Column A (annual, semiannual, monthly, daily, and continuous). (A) (B) (C) (D) Frequency (m) FV (5 Years) FV (25 Years) FV (45 Years) 1 2 12 365 ∞