TB MC Qu. 09-21 A building owner charges net rent...A building owner charges net rent of $20 in the first year, $21 in the second year, and $22 in the third year, but is providing six months of freerent in the first year as a concession. Using a 10 percent discount rate, what is the effective rent over the three years?

The effective rent shows the average lease rate. The landlord sometimes provides a concession for…

Answered: TB MC Qu. 09-21 A building owner…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

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Given the following information, calculate the effective monthly rent payment. Lease Term: 10 years, Concession: 1 year free rent to be spread over the term of the lease, Rental Space: 5000 square feet, Rental Rate: $35 per square foot per year, Landlord's discount rate: 9%. Excel link: Excel Sheet.xlsx $5,687 $10,689 $7,081 $12,471
P4-13 Annuity due. Reginald is about to lease an apartment for 24 months. The landlord wants him to make the lease payments at the start of the month. The monthly payments are $1,000 per month. The landlord says he will allow Reg to prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is $21,692. What is the implied monthly discount rate for the rent? If Reg is earning 1.4% on his savings monthly, should he pay by month or make the one-time payment? What is the implied monthly discount rate for the rent? % (Round to two decimal places.)
What is the Net Effective Rent using the following data? Five year gross step up lease with expense stops Gross rents Yr. 1 = $23.00, increasing 3% each year beginning Yr. 2 Operating Expense Yr. 1 $12.00, increasing 2% each year beginning Yr. 2 %3! Expense Stop at $12.00 Round to two decimals for the rents. O $12.77 O $11.84 O $12.29 O $12.56
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Estimated payments for individual taxpayers are due on the following dates: Twice a year on April 15 and September 15 Four installments on April 15, June 15, September 15, and January 15 of the next year Four times a year on April 15, July 15, September 15, and December 15 Twice a year on June 15 and December 15
Bia A certain property can be bought with payments of Php 80, 000 at the end of each month for the next 7 years. If the interest rate per period (i) is 6%, find the buyer's remaining liability before the tenth payment. O Php 1, 654, 830. 75 O Php 1, 953, 450.08 O Php 1, 420, 375. 25 O Php 1, 395, 455. 92 O Php 1, 380, 450.80
A property owner is evaluating the following alternatives for leasing space in his office building for the next five years: Net lease with CPI adjustments. The rent will be $16 per square foot the first year. After the first year, the rent will be increased by the amount of any increase in the CPI. The CPI is expected to increase 4 percent per year. Calculate the effective rent to the owner (after expenses) for the lease using a 10 percent discount rate A. $21.48 B. $17.90 C. $16.11 D. $19.69
12- 8. Winter Apartments is offering $50 off your monthly rent when signing month lease AND the first months' rent for only $50. Two bedrooms normally rent for $1300 and deposits are $0-$1300 depending on credit. How should the Rent, Special Type, Special Amount and Lease Term be entered? Rent 1300 O a. Rent 1250 O c. Special Type Special 1234 Amount 3-One time s 600 Special Type Special 1234 Amount 4-Other (see 50 Lease Term 12 12 Lease Term 12 12 Rent 1250 O b. Special Type Special 1234 Amount 4-Other (see 1200 Lease Term 12 12
what is the effective rent for a 6-year net lease with a fixed at $24/sf in which the landlord agrees to give the tenant one year free rent up front and pay for $7/sf worth of tenant improvements if the discount rate is 8%?
If an apartment building list rent at $1,300 per month but is offering two months free rent (on an annual lease) then what is the effective rent? $833 $1,300 $1,250 $1,080 $1,170
Use the following to answer questions 20 – 24 On January 1, year 1, JT borrows $41,000 to purchase a new vehicle by agreeing to a 3.0%, 6-year loan with the bank. Payments are due at the end of each month with the first installment (vehicle payment) due on January 31, year 1. ROUND YOUR ANSWERS TO THE NEAREST CENT. 20. Determine the monthly vehicle payment (installment) $ 21. Determine the interest expense for the first car payment $ 22. How much of the payment will decrease the amount owed (principal)? $ 23. After the first vehicle payment is made the amount owed on the vehicle would be: $ 24. Determine interest expense for the second car payment $
A retail tenant signed a lease agreeing to pay $12.00/SF in base rent plus 3% of sales over a breakpoint of $1.8 million. If the retailer has $6.0 million in sales this year, how much will that retailer have to pay in percentage rent?

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