Assume a 20-year, 8%, monthly amortizing, $4,000,000 mortgage on a residential property that was purchased for $5,000,000. Net operating income for Year 1 is $400,000. You can easily do these problems in Excel, and some with an online mortgage calculator, but you'll need to be able to do them using your calculator for Exam 4, so you might want to practice. For all answers, round to the nearest dollar (e.g., 423,444). See inclass 11/14/23 answers (page 5 for calculator instructions). What is the total mortgage payment in Year 1 (not the monthly amount)? What is the total amount paid in interest in Year 1? What is the mortgage balance at the end of Year 1? What is the annual depreciation amount? What would be the Year 1 pre-tax cash flow, taking the answers above into account? Assuming a 20% tax rate, what would be the taxes paid for Year 1? Assuming the foregoing information, what would be the after-tax cash flow for Year 1?

Assume a 20-year, 8%, monthly amortizing, $4,000,000 mortgage on a residential property that was purchased for $5,000,000. Net operating income for Year 1 is $400,000. You can easily do these problems in Excel, and some with an online mortgage calculator, but you'll need to be able to do them using your calculator for Exam 4, so you might want to practice. For all answers, round to the nearest dollar (e.g., 423,444). See inclass 11/14/23 answers (page 5 for calculator instructions). What is the total mortgage payment in Year 1 (not the monthly amount)? What is the total amount paid in interest in Year 1? What is the mortgage balance at the end of Year 1? What is the annual depreciation amount? What would be the Year 1 pre-tax cash flow, taking the answers above into account? Assuming a 20% tax rate, what would be the taxes paid for Year 1? Assuming the foregoing information, what would be the after-tax cash flow for Year 1?

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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You plan to purchase a $240,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8 percent. You will make a down payment of 10 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Construct the amortization schedule for the first six payments. Complete this question by entering your answers in the tabs below. Required A Required B Construct the amortization schedule for the first six payments. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Amortization Schedule for first 6 payments (months) Month Beginning Loan Balance Payment Interest Principal Ending Loan Balance 1 2 3 4 5 6
Suppose you need to borrow $200,000 to buy a home, and you are deciding between a 15 year mortgage and a 30 year mortgage. Research a bank offering 15 year and 30 year mortgage loans and find the interest rates on those loans. Use the techniques you learned in this Module to do the following: 1. Calculate the monthly payment for a 15-year mortgage and for a 30-year mortgage. 2. Find the total amount of interest you will pay on the 15 year mortgage and on the 30 year mortgage. 3. Describe some of the factors (financial and non-financial) that can influence whether to obtain a shorter term mortgage or a longer term mortgage. 4. Which mortgage would you take, the 15 year or the 30 year? Explain your decision.
You plan to purchase a $320,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 5.20 percent. You will make a down payment of 15 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. (1) Construct the amortization schedule for the mortgage. b. (2) How much total interest is paid on this mortgage? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B1 Amortization Schedule Month 1 2 3 179 180 Construct the amortization schedule for the mortgage? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Req 82 Total Interest Amortization Schedule for the 15-Year Mortgage Interest Cumulative Principal Principal 272,000.00 270,999.26 Cumulative Interest Ending Balance
Consider a situation where homebuyers find the home of their dreams priced at $330,000. They have saved a 20% down payment and are prequalified for a 20-year, $264,000 fixed-rate mortgage at 3.5%. Recaling that mortgage interest is income tax deductible, find the additional net monthly savings resulting from changing the mortgage term from 20 yoars to 30 yoars. Click the icon to view the Real Estate Amortization Table. The net monthly savings is $ (Round to the nearest dollar as needed.)
You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 25th payment. (pls show solution)
You are assiting a newly hired employee. You begin explaning the process of utilizing excel to finance properties. Consider the following. A realator has a house on sale for $640,000. If possible you believe you can finance the home for $300,000 for 20 years at a 3% interest rate. What would the monthly principle and interest payment be for the acquird loan? Calculate using the PV funtion in excel. How would you caluclate this in Excel using the PV function? Rate: Nper: Pmt: FV: Type:
Be sure that you show all of your work to reach your answer. Each step must be on a separate line. Your method to reach your answer must be clear and include explanations. Be sure to only round at the last step for your final answer. You plan to purchase a house for $410,000 and you will make a 20% down payment. You are evaluating two mortgages a 30-year fixed mortgage at 2.87% and a 15-year fixed mortgage at 2.25%. Your goal is to have a monthly payment that fits within your budget. a. Which mortgage will give you the lowest monthly payment? What will that payment be? How much less will this be than the other monthly mortgage payment? b. Assuming you take the full term of the mortgage, which mortgage will result in you paying the most interest? What will that interest be? How much more will this be than the interest on the other mortgage?
In the Excel Payment Function file that follows, you are looking to see what your basic mortgage payment will be if you buy a home for $250,000. It will be a 30-year mortgage. The interest your bank will charge will be 7.5%. In cell C5, create a function that determines what your monthly payment will be.
In the Excel Payment Function file that follows, you are looking to see what your basic mortgage payment will be if you buy a home for $250,000. It will be a 30-year mortgage. The interest your bank will charge will be 7.5%. In cell C5, use the PMT function to determine what your monthly payment will be. Submit the spreadsheet in Canvas.
Please show how to solve this unsing excel and please show all formulas in the spreadsheet. You decide to buy a house with price of $500,000, You put 20% down payment and consider a 15-year fixed rate mortgage to pay the remaining balance. The lender offers you three choices of the mortgage with monthly payments shown in the table as a., b., and c. Assume that the origination cost is $8,000. A. If the loan will be outstanding for 15 years, what is the effective cost for each choice? Which choice is most ideal? explain? B. Which mortgage choices are not properly priced? explain?
You own a home that was recently appraised for $370,000. The balance on your existing mortgage is $117,350. If your bank is willing to loan up to 70% of the appraised value, what is the potential amount (in $) of credit available on a home equity loan? $ Need Help? Read It Watch It Master It
Please show all steps and formulas in an excel spreadsheet to answer a. through g. using the information below! You bought a house with price of $250,000. Your LTV (loan-to-value ratio) is 80%. You choose the 30-year mortgage with interest rate 6%. Assuming the total transaction cost is $10,000. a. What is your loan amount? b. What is your monthly payment? c. What will be the loan balance at the end of nine years? d. What is the effective borrowing cost if the loan will be prepaid at the end of nine years? e. In the monthly payment, how much you pay for the principle and how much you pay for the interest in the 1st and the 2nd month? f. What will be your interest payments for the first 5 years (year 1 to year 5) and the last 5 years (year 26 to year 30)? g. What is your annual percentage rate (APR)?

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