Doris Wade purchased a condominium for $50,000 in 1988. Her down payment was $26,000. She financed the remaining amount as a $24,000, 30-year mortgage at 9%, compounded monthly. Her monthlypayments are $190. It is now 2003 (15 years later) and Doris has sold the condominium for $90,000, immediately after making her 180th payment on the unit. Find her effective annual internal rate of return onthis investment.Choose the closest answer below.OA. 5.2%O B. 9%O C. 1.6%OD. 3.8%

Internal rate of return is used to assess a project's or investment's prospective profitability. It…

Answered: Doris Wade purchased a condominium for…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Benefit of a Higher APY Isabel Lopez from Lewiston, Idaho, who is 19 years old, recently received an inheritance of $49,000 from her grandmother's estate. She plans to use the money for the down payment on a home in ten years when she finishes her education. Right now the funds are in a savings account paying 4.0 percent APY. How much would Isabel have in ten years if instead she purchased a ten-year CD paying 6.0 percent? Round your answer to the nearest dollar. (Hint: Use Appendix A-1 or visit the Garman/Forgue companion website.) Round Future Value of a Single Amount in intermediate calculations to four decimal places.
Jen purchased a condo in Naples, Florida, for $699,000. She put 20% down and financed the rest at 5% for 35 years. What are Jen’s total cost of interest? Multiple Choice $457,425.60 $626,863.20 $626,128.20 $978,600
I’m confused about this question can you help me please!?
1. Jose Garcia's life long dream is to own a fishing boat to use in his retirement. Jose has recently come into an in heritance of $400,000. He estimates that the boat he wants will cost $300,000 when he retires in 5 years. How much of his in heritance must he invest at an annual rate of 8% compounded annually) to buy the boat at retirement? 2. Refer to the data in BE6.7. Assuming quarterly compounding of amounts invested at 8%, how much of Jose Garcia's in heritance must be invested to have enough at retirement to buy the boat?
You purchased your home in 1992 for $345,000 and sold the house in 2022 for $1,050,000. What was your rate of return? Question 14 options: 3.40% 4.16% 3.06% 3.78%.
Q#4: 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.
6. Jake and Archie are looking for places to live. Jake decides to rent a house for $1400 . Archie buys a house for $189 900, with a down payment of 10%. The bank has offered Archie a 20-year mortgage for the remainder of the cost, at 4% compounded semi-annually, with payments every two weeks. Jake and Archie both move after 5 years. Archie's house has depreciated by 2% per year. Compare Jake's and Archie's housing costs. per month.
Joe is buying some kitchen equipment for his new apartment. The total cost is $ 3,800$3,800 and he places a down payment of $380 There is add-on interest of 10% What is the total amount to be repaid if he takes 4 years to pay for the purchase? Round the answer to the nearest cent. A.)3762.00 B.)4788.00 C.)140220.00 D.)None of the above is correct.
Ken just purchased new furniture for his house at a cost of $15,800. The loan calls for weekly payments for the next 5 years at an annual interest rate of 10 63 percent. How much are his weekly payments? Multiple Choice O $78.40 O $81.45 $60.77 $82.32 $81.02
50. If John purchases a new car for $18,500 and, according to research, itstraight line depreciates to zero value after 10 years, how much will his car beworth after 99 months? A. $0B. $3,237.50C. $186.87D. $3,150.25
Ff.236.
Dick Hercher bought a home in Homewood, Illinois, for $230,00O. He put down 20% and obtained a mortgage for 25 years at 8%. The total interest cost of the loan is: Multiple Choice $327,372.80 None of these $184,000.00 $242,144.00 $242,411.00 acer

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