Ali spent $850,000 to buy an apartment building. After deducting all operatingexpenses, real estate taxes, and insurance, he receives $69,010 in the first year, $65,003 in the second year, $65,070 in the third year, and $85,000 in the fourth year. Calculate the average rate of return, and conclude your results with your comments about the ARR for the given situation
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- London purchased a piece of real estate last year for $81,800. The real estate is now worth $104,600. If London needs to have a total return of 0.22 during the year, then what is the dollar amount of income that she needed to have to reach her objective? Round to two decimal places.Bing gave $800 to her cousin. As a token of gratitude, her cousin gave her $1, 520 at the end of the year instead of $800. If she looks at this as an investment, what is the annual rate of return?Saul Cervantes has just purchased some equipment for his landscaping business. For this equipment, he must pay the following amounts at the end of each of the next five years: $10, 450, $ 8, 500, $9,675, $12, 500, and $11, 635. If the appropriate discount rate is 10.875 percent, what is the cost in today's dollars of the equipment Saul purchased today? Please show the excel equation
- Rex is planning to buy a house. His gross income is $72000 and his net income is $60000. He saved $30000 for the downpayment. The monthly expenses are $250 for property taxes and $150 for heat. His bank uses the GDSR maximum approval ratio of $32%. The approval interest rate on a 5-year term will be 4.64%. Calculate the maximum mortagage Rex could arrange on the new house and Present all calculations and TVM variables when calThe Bourassas decide to sell a home for $460,000. They are charged a real estate commission of 8% of the selling price, title insurance that is 1.2% of the selling price, and an escrow fee of $875. (a) What amount (in dollars) do the Bourassas receive after fees? (b) What percentage of the selling price was fees? Round your answer to the nearest percent.You own a house that you rent for $1,200 a month. The maintenance expenses on the house average $200 a month. The house cost $89,000 when you purchased it several years ago. A recent appraisal on the house valued it at $120,000. The annual property taxes are $5,000. If you sell the house you will incur $25,000 in expenses. 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?
- PLEASE ANSWER THE QUESTIONS BELOW AND BE SURE TO SHOW THE FORMULAS AND THE WORK. THANIK YOU :) 1) Janet purchased a new house for $120,000, obviously not in New York. She paid $35,000 down and agreed to pay the rest over the next 25 years in 25 equal end-of-year payments, plus 9% compound interest on the unpaid balance. What will these equal payments be?Compute the value for each of the following independent situations. Note: Use Excel or a financial calculator. Round your answers to 2 decimal places. 1. To save for their new child's college education, a couple places $28,400 in an account. What amount will accumulate in the account at the end of 18 years, assuming an interest rate of 7.25% compounded annually? 2. An individual has just inherited a piece of land. The individual plans to hold the land for three years and then expects the land to sell for $208,500. What is the value today of inheriting the land, assuming an interest rate of 8.5% compounded annually? 3. To save money for the down payment on a house, an individual places $6,700 in an account at the end of each quarter. What amount will accumulate in the account at the end of four years, assuming an interest rate of 9.75% compounded quarterly? 4. To purchase a car, an individual agrees to pay $1,140 at the end of each month for the next six years. What is the cost of the…Patricia was receiving rental payments of $2, 000 at the beginning of every month from the tenants of her commercial property. What would be the value of her property in the market if she wants to sell it, assuming a market capitalization rate of 6.50% compounded annually?
- Charles Wilson has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts at the end of each of the next five years: $10,390, $7,960, $9,250, $12,940, and $11,640. If the appropriate discount rate is 6.425 percent, what is the cost in today’s dollars of the equipment Charles purchased today? (Round answer to 2 decimal placesBrittany purchased an industrial lot in Sudbury for $1,100,000 and it was assessed at 65% of its purchase price. The annual property tax on the lot is 25 mills. a. Calculate the assessed value of the lot. Round to the nearest cent b. Calculate the property tax she would have to pay every year. Round to the nearest centSherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $2,200, and interest on the home mortgage is $4,000. Annual utilities and maintenance expenses total $2,000, and depreciation expense is $4,500. Calculate Sherry’s deductible depreciation, the net income or loss from the vacation home, and the loss carryforward, if any. Base allocation on number of months, rather than days. If your answer value is zero, enter "0." Line Item Description Amount Amount Rental income 6000 Expenses: Real estate taxes 1100 Mortgage interest 2000 Utilities and maintenance 1000 Depreciation fill in the blank 5 fill in the blank 6 Net rental income $fill in the blank 7 Loss carried forward to 2024 $fill in the blank 8