6 years ago, your company purchased a lot of land for $769203 . You received an offer to purchase the land for $1131668. If you sell it at this price, what is the implied return?
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
6 years ago, your company purchased a lot of land for $769203 . You received an offer to purchase the land for $1131668. If you sell it at this price, what is the implied return?
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- You have entered into an agreement for the purchase of land. The agreement specifies that you will take ownership of the land immediately. You have agreed to pay $51, 000 today and another $51,000 in three years. Calculate the total cost of the land today, assuming a discount rate of (a) 2%, (b) 4%, or (c) 6%.You have entered into an agreement for the purchase of land. The agreement specifies that you will take ownership of the land immediately. You have agreed to pay $55,000 today and another $55,000 in three years. Calculate the total cost of the land today, assuming a discount rate of (a) 3 %, (b) 5%, or (c) 7%. Note: Use tables, Excel, or a financial calculator. Do not round your intermediate values. Round your answers to 2 decimal places. (FV of $1. PV of $1. FVA of $1, and PVA of $1) Answer is complete but not entirely correct. Compounding Period Due Payment Interest Amount Total Cost of Rate Land Today a. $ 55,000 3% Annually 3 years S 155,573.62 b. 55,000 5% Annually 3 years 238,121.22 C. 55,000 7% Annually 3 3y years 296.410.920Consider an asset that you purchase for $183.836. Its nominal resale value after 3 years of ownership is $16,948. At that time you plan to sell it and invest the proceeds elsewhere. What is the net present cost to you of holding this asset if the nominal discount raM is 6%?
- A realtor found a deal on a housing development and thinks it can be sold for $658,813 in 4 years due to future commercial development. Using an annual discount rate of 2.14%, what is the present value of this land?Alyson, another investor, has also purchased an IIP for the original price of $984.31767830979. Two years pass, and Alyson has just received the annual payment of $37. She is considering selling the IIP. Again, the original information regarding IIP's has been repeated below. Customers pay $984.31767830979 to buy an IIP. The IIP will pay out $37 at the end of each year for 12 years The IIP will pay out a further single payment of $1,000 after 12 years There are no further payments after this single payment at time 12. a. Barney is willing to purchase the IIP from Alyson. He requires a return of 5.43% p.a. effective. What is the maximum price Barney is willing to pay? Give your answer in dollars, to the nearest cent.You have entered into an agreement for the purchase of land. The agreement specifies that you will take ownership of the land immediately. You have agreed to pay $35,000 today and another $35,000 in three years. Calculate the total cost of the land today, assuming a discount rate of (a) 3%, (b) 5%, or (c) 7%. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) a. b. C Payment Amount $ 35,000 35,000 35,000 Interest Rate 3% 5% 7% Compounding Annually Annually Annually Period Due 3 years 3 years 3 years Total Cost of Land Today
- A holiday trailer depreciates in value between 10% to 15% per year. If your family purchases a holiday trailer for $29,000.00 and they plan on selling it in 4 year, what is the most that they could expect to sell it for if these depreciation percentages are correct?You purchased a warehouse eight years ago for P3.5M. Since then you had rented it out for P240,000.00 per year, incurring P55,000.00 per year for repairs and maintenance. Five years ago you spent P250,000.00 for roof replacement and you increased the annual rent to P300,000.00 the succeeding year. If you decide to sell the warehouse for P5.4M to a willing buyer now, evaluate your investment using future worth analysis and a 12.5% rate of return. Ans: -P1,328.417.25ll. Subject :- Accounting You are buying an investment property for $375075 today. Through research, you have determined that the value of the property is likely to grow at a rate of 7.92% per year, on average. How long until the value of the property grows to $521968?
- If your father wants to invest in a piece of land and give you the following facts •Purchase price $10,000 . Annual maintenance: 100 • Expected sale price after 5 years: $20,000 The IRR of the investment is nearest to:A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of $7,600 for 8 years. The loan rate is 6%. At the end of 8 years, he believes that he can sell the land for $80,000. If he is correct on the future price, did he make a wise investment?Anewly built property, containing space fora store and two offices, can be purchased for P1200,000 A prospective buyer estimates that during the next 10 years he can obtain annual rentals of at least P6oo.000 from the property and that the annual Out-of-pocket cisbursements will not exceed P42.000. he belleves that he should be able to dispose of the property at the end of 10 years at not less than P500.000. Annual taxes and insurance will total 2.8% of the first cost. Assume he has Sutficient eguity capital to purenase the property and that the average return he is obtaining from his capital is 30% Would you recommend the investment? a) Use Rate of retum method b) Use payout or payback method