Author: Anonymous

Given the following information about a fully amortizing loan, calculate the lender’s yield. Loan amount: $210,000.00 Term: 21 years Interest rate: 5.75% compounded monthly Monthly Payment: $-1,437.10 Discount points: 1.75

Assume that a piece of land is currently valued at $[a]. If this piece of land is expected to appreciate at an annual rate of [c]% per year for the next [b] years, how much will the land be worth [b] years from now?

Given the following information about a fully amortizing loan, calculate the effective borrowing cost to the owner (EBC). Loan Amount: $220,000.00 Loan Amortization Term: 22 years Interest Rate: 6.00% compounded monthly Monthly Payment: $-1,502.76 Discount Points: 2 Other Closing Expenses:  $2,000.00 Assume the owner pays off the loan early at the end of year: 12

Suppose that an industrial building can be purchased today for $190,000.00. If it is expected to produce cash flows of $19,000.00 for each of the next 5 years (assume CFs are received at the end of each year) and can be sold at the end of the fifth year for $218,500.00, what is the internal rate of return (IRR) on this investment?

Given the following information about a fully amortizing loan, calculate the lender’s yield. Loan amount: $240,000.00 Term: 24 years Interest rate: 6.50% compounded monthly Monthly Payment: $-1,647.70 Discount points: 2.5

Suppose that an industrial building can be purchased today for $270,000.00. If it is expected to produce cash flows of $27,000.00 for each of the next 7 years (assume CFs are received at the end of each year) and can be sold at the end of the fifth year for $326,700.00, what is the internal rate of return (IRR) on this investment?

An investor agreed to sell a warehouse [a] years from now to the tenant who currently rents the space. The tenant will continue to pay $[b] rent at the end of each year including year five in which he will purchase the building for an additional $[c]. Assuming the investor’s required rate of return is [d]%, how much is this deal presently worth to the investor who was willing to sell?

Given the following information about a fully amortizing loan, calculate the lender’s yield. Loan amount: $260,000.00 Term: 26 years Interest rate: 7.00% compounded monthly Monthly Payment: $-1,811.78 Discount points: 3

Suppose that an industrial building can be purchased today for $230,000.00. If it is expected to produce cash flows of $23,000.00 for each of the next 9 years (assume CFs are received at the end of each year) and can be sold at the end of the fifth year for $292,100.00, what is the internal rate of return (IRR) on this investment?

Given the following information about a fully amortizing loan, calculate the effective borrowing cost. Loan Amount: $180,000.00 Term: 18 years Interest Rate: 5.00% compounded monthly Monthly Payment: $-1,265.46 Discount Points: 4 Other Closing Expenses:  $1,000.00