a. What is the present value of the lease option if money is worth 7.5% compounded semi-annually? $0.00 Round to the nearest cent 4 b. Which option would be economically better? c. What is the present value of the lease option if money is worth 10.2% compounded semi-annually? $0.00 Round to the nearest cent d. Which option would be economically better?
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- A couple purchased a home and signed a mortgage contract for $500, 000 to be paid with half-yearly payments over a 25-year period. The interest rate applicable is j2 = 8.5% p.a. applicable for the first five years, with the condition that the interest rate will be increased by 4% every 5 years for the remaining term of the loan. Based on the given information, your group is required to use Excel software to: (a) Calculate the half-yearly payment required for each five-year interval (b) Calculate the loan outstanding (outstanding balance) at the beginning of each five year interval. (c) Prepare a loan amortization table for the final 12 half-years of the loan term.Marcella paid for a kitchen set over time, signing an installment contract that required monthly payments of $197.99 for 3 years. The first payment was made on the date of purchase and interest was 18% compounded semi-annually. What was the value of the kitchen set on the date of purchase? Show all inputs and any other necessary work below. P/Y = C/Y = N= I/Y = PV = PMT = FV = Final Answer:A tenant wants to lease a building for $52,000 per year. She signs a five-year rental agreement that states that she will pay $26,000 every six months for the next five years. Which of the following is the timeline for her rental payments, assuming she makes the first payment immediately? OA. Date (years) Cash Flows (thousands) O B. Date (years) Cash Flows (thousands) OC. Date (years) O D. Cash Flows (thousands) Date (years) Cash Flows (thousands) 0 0 - $52 0 $52 1 0 1 2 - $52 1 $26 $26 $26 $26 $26 $26 $26 $26 $26 $26 $26 3 1/2 2 - $52 2 $52 $52 1 4 - $26 - $26 - $26 3 - $52 3 $52 1 1/2 ... - $26 5 M 4 - $52 2 6 4 $52 - $26 3 1/2 5 - $52 5 $52 4 4 1/2 5 2 1/2 3 3 1/2 - $26 - $26 - $26 4 4 1/2 - $26 - $26 5 0
- Lorene, Inc., owns an apartment complex. The terms of Lorenes lease agreement require new tenants to pay the first and last months rent and a cleaning deposit at the inception of the lease. The cleaning deposit is returned when tenants move out and leave their apartment in good condition. If the apartment is not in good condition, Lorene hires a cleaning company and uses the tenants deposit to pay the cleaning bill, with any excess deposit returned. During the current year, Lorene receives monthly rents totaling 28,000, last months rent deposits from new tenants of 8,000, and cleaning deposits of 7,000. Lorene keeps 5,000 in cleaning deposits to pay the cleaning company bill on apartments that are not left in good shape (the 5,000 is the actual cost that is paid in cash to the cleaning company) and returns 4,000 in deposits. Lorenes expenses related to the rental property (other than the cleaning costs) are 14,000. What is Lorene, Inc.s gross income from the rental property if Lorene is a cash basis taxpayer? an accrual basis taxpayer?Hiram, a real estate professional, is representing a client interested in purchasing a 10-unit apartment complex. To purchase the property, the client has negotiated a $300,000 mortgage with an annual interest rate of 8%, compounded semi-annually, and amortized over 10 years. To complete an analysis on the property, Hiram needs to know what the monthly mortgage payment is. If the mortgage payments are to be made in arrears, what is the monthly mortgage payment? A) $3,595.73 B) $3,619.23 C) $3,486.92 D) $3,351.72PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULASProblem 2:René Lara has just signed in notary #8, the contract for the purchase and sale of a house, for a value of 1'470,000.00. He showed the seller the equivalent of a 20% down payment, and the notary the deed expenses, valued at $25,000.00 and will pay the rest in equal monthly payments during the next 15 years, which include interest at 9½% nominal interest. a) Find the value of each of the monthly payments.b) Find the total amount paid.c) Find the total amount of interest paid.d) Find the effective rate. Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
- You are starting a business and have signed a rental lease for an office in Santa Monica. This office lease is for four years with an annual rent of $24,000 per year, paid at the beginning of each year of the lease. However, just before you pay your first rent, the property owner decides he wants to use the space for another purpose and proposes to buy back the lease from you. The rent for any other similar space you can find for your business is $30,000 per year, also paid at the beginning of the year. What would be the minimum compensation that you would ask from the property owner to give up your original lease? Calculate the numerical answer. Assume the discount interest rate is 6%.Charles secured a 5-year car lease at 6.50% compounded annually that required her to make payments of $883.39 at the beginning of each month. Calculate the cost of the car if she made a downpayment of $2,250.William and Catherine are considering an offer for a piece of property which receives a monthly lease of $ 8411 due at the beginning of each month. If money is worth 14.8% compounded quarterly, what is a fair offer? a. $698727.07 b. $513311.62 c. $528211.73 d. $678861.78 e. $691974.19
- Mary's lawyer gave her the following two options to settle her invoice. 1)$1900 in 1 month and the balance of $2,800 in 5 months. 2)Two equal payments , one in 21 days and the other in 10 months. If money earned 5.30% p.a. , what was the value of the equal payments in option 2) such that it is equivalent to the payments in option 1).Use now as the focal date for this question.Edward purchased a car using a 6-year car lease at 5.20 % compounded quarterly that required her to make payments of $338 at the beginning of each month. Calculate the cost of the car if she made a down payment of $3,750. I Round to the nearest centWhen Albertina openied her law office, she bought $19,000 worth of law books and $7600 worth of furniture. She paid $1300 down and agreed to amortize the balance with semiannual payments for 5 years at 11% compounded semiannually. Find the amount of each payment. Then use the formula for the remaining balance to find the number of remaining payments when the loan has been reduced below $12,000. What is the amount of each payment? $ (Round to the nearest cent as needed.)
