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