Question

Calculate The Following Elements Used to Derive a Cap Rate Part Paid Off 4- Loan Period 30, Interest Rate 6.5%, Holding Period 10 _____________ 5- Loan Period 25, Interest Rate 6.5%, Holding Period 10 _____________ 6- Loan Period 20, Interest Rate 6.5%, Holding Period 10 _____________ 7- Loan Period 20, Interest Rate 6.5%, Holding Period 5 _____________ 8- Loan Period 20, Interest Rate 7.5%, Holding Period 5 _____________

Answer #1

Part paid off=1-(1-1/(1-1/(1+rate/12)^(12*total tenure))*(1-1/(1+rate/12)^(12*holding period)))*(1+rate/12)^(12*holding period)

1.

=1-(1-1/(1-1/(1+6.5%/12)^(12*30))*(1-1/(1+6.5%/12)^(12*10)))*(1+6.5%/12)^(12*10)=0.152238736369862

2.

=1-(1-1/(1-1/(1+6.5%/12)^(12*25))*(1-1/(1+6.5%/12)^(12*10)))*(1+6.5%/12)^(12*10)=0.22488640522842

3.

=1-(1-1/(1-1/(1+6.5%/12)^(12*20))*(1-1/(1+6.5%/12)^(12*10)))*(1+6.5%/12)^(12*10)=0.343384925237047

4.

=1-(1-1/(1-1/(1+6.5%/12)^(12*20))*(1-1/(1+6.5%/12)^(12*5)))*(1+6.5%/12)^(12*5)=0.144108791617682

5.

=1-(1-1/(1-1/(1+7.5%/12)^(12*20))*(1-1/(1+7.5%/12)^(12*5)))*(1+7.5%/12)^(12*5)=0.130979016

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Once a person signs the documents to borrow money for a home, they
are presented with an amortization table or schedule for the
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Problem 4-20
Amortization Schedule
Consider a $10,000 loan to be repaid in equal installments at
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Set up an amortization schedule for the loan. Round your
answers to the nearest cent. Enter "0" if required
Year
Payment
Repayment Interest
Repayment of Principal
Balance
1
$
$
$
$
2
$
$
$
$
3
$
$
$
$
4
$
$
$
$
5
$
$
$ ...

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?
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B) About 83 months, or about 7 years
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You
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interest rate is 8%. Construct an amortization schedule.
A.
Calculate the PV of $100 due in 5 years compounded daily at
12%.
B. Calculate the FV of $1000 due in 3 years at 6% compounded
quarterly.
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John is expecting to get paid $20 this period and $30 next
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a) U(C1,C2) =
C11/2C21/2
b) U(C1,C2) =
C11/4C23/4
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{C1C2}

John is considering an adjustable rate mortgage loan
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• Index: one year T-Bill
• Margin: 2%
• Periodic cap: 2%
• Lifetime cap: none
• Negative amortization: not allowed
• Financing costs: 1% origination fee and 2
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Consider the following requirements for a certain product.
Period
1
2
3
4
5
6
7
8
Gross requirements
0
200
200
500
0
400
0
400
Beginning inventory = 500 units
Setup cost = $500 per setup
Lead time = 1 week
Holding cost = $3 per unit per week
a. Develop the lot-for-lot MRP table.
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Period
1
2
3
4
5
6
7
8
Gross requirements
0
200
200
500
0...

Excel assignment
Loan amount $ 67,500
Interest rate 7%
Loan term 5
Complete the following analysis. Do not hard code values in your
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Loan payment:.....................
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1
2
3
4
5
Total interest paid.................

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