Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- 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%arrow_forwardSOLVE STEP BY STEP IN DIGITAL FORMAT 1. What is the amount of an investment for $155,000 at a compound interest rate of 21% per year in 7 years? Formulas Compound interest Annual compounding M=C(1 + i)" 1 = Cni M = C(1 + i) Fractional capitalization M-C{1+4)*arrow_forwardA company has a savings account with a 10% annually compounded return for five years. The value of the account at the end of five years will be $75,000. The implied annual interest is $75,000 x 0.10 = $7,500, and the present value of the savings account is $75,000 x 0.6209 = $46,567. What is the discounted value of the account at the beginning of Year 1? $67,500 $37,500 $75,000 $46,567arrow_forward
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