Assume that the market value of your condo has now risen to $120,000.  Ignoring interest and other costs, and assuming the loan amount is still $80,000, calculate your rate of return on your asset (ROA) and your rate of return on equity (ROE).

Q: You are trying to decide how much to save for retirement. Assume you plan to save $7.500 per vear…

A: Here, General Details: Details of Part-d: Annual Withdrawal is $170,000 Details of Part-e:…

Q: rent

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

Q: e net price. Your buyer also need to pay the monthly amortization of 34,950 for 5 years.How much was…

A: Amortization is the allocation of the cost of an intangible asset over its life. The maximum life of…

Q: You organize an investment team to purchase a commercial property for $850,000. The bank demands a…

A: A mortgage loan is given by the bank to the purchase of the home for purchasing the home and if the…

Q: Assuming that you run a small business and need P50,000 of financing, you can either take out a…

A: There are two types of financing equity and debt. Equity financing is raising funds by selling…

Q: You invest $10,000 in a rate-riser GIC that earns 3% compounded monthly in the first year, 4%…

A: The formula is:

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

A: Computation as follows:

Q: What cash flow must the investment provide at the end of each of the final 4 years, that is, what is…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 5.44% interest. Suppose…

A: Note: No intermediate rounding is done for successive parts as well.   Value of house = $525,000…

Q: You planned to borrow $575,000 for a house at 2.9% interest for 30 years.  You find a house that you…

A: A loan is a sum of money obtained from outside sources such as banks and repaid over time in fixed…

Q: Suppose you bought a condo for $100,000 financing it with a $20,000 down payment of your own funds…

A: Return on asset (ROA) is the ratio to calculate the efficiency and profitability which a firm will…

Q: did you accidentally use the original price of the house, 141000, in your excel formula instead of…

A: Since, more than one question is posted at a time, the answer for first question is only provided as…

Q: mall financial analyst, you have been selected by a client to provide assistance in the following…

A: Future value of annuity includes the interest accumulated and amount being deposited over the period…

Q: 2. Suppose you bought a condo for $200,000 financing it with a $40,000 down payment of your own…

A: 1. Calculation of Return on Assets (ROA) as follows: Cost of Condo = $200,000 Down payment = $40,000…

Q: Suppose you want to buy a rent to own house worth P450,000. You made a down payment of 15% of the…

A: The term mortgage can be defined as the contract between two parties namely lender and  borrower,…

Q: Suppose you want to buy a rent to own house worth P450,000. You made a down payment of 15% of the…

A: Mortgage loan: Providing the lender with an immovable asset, such as a home or commercial property,…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Computation of total interest:Hence, the total interest that is paid so far is $1,980.06.

Q: Hello, I have a question for an expert. Zachary Porter of Abilene, Kansas, is contemplating borrow…

A: Loan is the value or an amount which is borrowed from various sources like bank and repay it later…

Q: Suppose you buy a $3,500,000 house and lot with an equity of $600,000. Is it possible to compute the…

A: Equity in this scenario is the down payment made on the loan.

Q: Your organization has been asked to invest in a continuing care retirement center. Your investment…

A: Profitability index = Present value of cash flow / present value of investment

Q: Suppose you take out a 45-year $125,000 mortgage with an APR of 6%. You make payments for 5 years…

A: Original loan = $125,000 APR = 6% New loan APR = 5.2%

Q: Consider the following situation, which requires comparison of options.Cousin Thaddeus offers to pay…

A: Annuities are insurance contracts that promise to pay you regular income either immediately or in…

Q: Suppose that 10 years ago you bought a home for $160,000, paying 10% as a down payment, and…

A: A mortgage is a loan on a property where the collateral to the loan is the property itself.

Q: omputing the present value: 1. You are thinking of buying a six-acre lot for $70,000. The lot will…

A: Part (A): Calculation of present value if r is 0.05: Answer: The present value is $78,352.62

Q: You are negotiating to make a 6-year loan of $40,000 to Breck Inc. To repay you, Breck will pay…

A: In order to profit from lending, one has to ensure that the PV of loan payments must be greater than…

Q: The market value of your house is 175,000 and you have a first mortage balance of 100,000. If a…

A: Market Value =175000 First Mortgage Balance =100000 Loan to Market Value(LTV) = 80%

Q: You own a home that was recently appraised for $330,000. The balance on your existing mortgage is…

A: Potential amount of credit available on home equity = ( Appraised value * Bank willing to loan ) -…

Q: Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 4.54% interest. Suppose…

A: a) Value of home = $475,000 Down payment = 30% = 30%*$475000 = $142500 Loan amount = $332,500 Number…

Q: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.64% interest. Suppose…

A: given, price = $525000 n = 30 years r = 4.64% m = 12 down payment =30%

Q: (Hard) You are negotiating to make a 7-year loan of $25,000 to Breck Inc. To repay you, Breck will…

A: For solving this we have to calculate present value of cash and than determine the loan remaining…

Q: You can buy property today for $2.0 million and sell it in 4 years for $3.0 million. (You earn no…

A: The value that is determined after compounding the present value over interest rates are known as…

Q: You are considering a safe investment opportunity that requires a $780 investment​ today, and will…

A: Investment (X) = $780 Payment after 2 years (P2) = $870 Payment after 5 years (P5) = $640 Let r =…

Q: An investor plans to purchase a 2-bedroom condo in San Francisco. The price of the property is…

A: A loan is taken after giving the down payment. Mortgage payment on the loan amount will be received…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Calculation of Interest Paid over the New Loan:The interest paid over the new loan is…

Q: A home worth $ 1,000,000.00 will have a 70% loan at an annual mortgage rate of 8%, with the…

A: Concept :- Cash on cash return It is a rate of return which calculates cash income earned on cash…

Q: what is X?

A: A loan simply refers to the amount borrowed from a lender. The lender in such a scenario might be a…

Q: You are thinking about investing $5,000 in your friend's landscaping business. Even though you know…

A: The question is based on the concept of Corporate finance

Q: Which of these situations would you prefer? Solve, a. You invest $2,500 in a certificate of deposit…

A: Inflation means a continuous rise in the general price level of a commodity. There are 2 types of…

Q: Suppose you buy a home and finance $255,000 at $2,223.17 per month for 30 years. What is the amount…

A: Given: Finance amount = $255,000 Payment per month = $2,223.17 Years = 30

Q: Allen plans to purchase a house in Lindfield this year, the selling price for the house is $3.8…

A: The loan to value ratio is the ratio of the amount of loan a bank can lend as a proportion o the…

Q: Suppose you want to purchase a $279,000 home, and you have the required $62,000 down payment in…

A: Determine the payments of the loan using the Excel PMT function with the following inputs: RATE = 4%…

Q: You want to invest $18,000 and are looking for safe investment options. Your bank is offering you a…

A: Given: Invested amount = $18,000 Nominal rate = 6%

Q: (Hard) You are negotiating to make a 7-year loan of $25,000 to Breck Inc. To repay you, Breck will…

A: For solving this we have to calculate present value of payment today and than find out remaining…

Q: ht a condo for $200,000 financing it with a $40,000 down payment of your own funds and a $160,000…

A: Return on Equity (ROE) is generally net income divided by equity, while Return on Assets (ROA) is…

Q: Suppose you buy a house for $175,000. One year later, the market price of the house has risen to…

A: a) Profit on Investment = Ending price - Beginning price  Profit on Investment = $195,000 - $175,000…

Q: Assume you can earn 8.6% per year on your investments. a. If you invest $110,000 for retirement at…

A: The major decisions that an individual considers while setting up the retirement goals are the total…

Q: Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 5.34% interest. Suppose…

A: Monthly payment: Monthly payment $1,854.655875 Answer: $1,854.66

Q: You are thinking about investing $5000 in your friend's landscaping business. Even though you know…

A:

Q: You are thinking about investing $4,865 in your friend's landscaping business. Even though you know…

A: Present value of future cash flow at comparative risk rate = Future cash flow / (1+expected rate of…

Q: Suppose you have $10,000 and  a choice of two alternatives: A) put the money in a savings account…

A: Expected return is the return one is expecting on his investment over a period of time.