Question
In: Finance
An investor pays $200/month into a real estate investment that promises to pay 7% annually, compounding...
An investor pays $200/month into a real estate investment that promises to pay 7% annually, compounding monthly. If investor pays into this for 4 years, what’s his value in 4 years?
A.10,735.02
B.8,352.19
C.887.98 1
D.1,041.75
Solutions
jeff jeffy answered 2 years agoRelated Solutions
An investor pays $200/month into a real estate investment that promises to pay 7% annually, compounding...
An investor pays $200/month into a real estate investment that
promises to pay 7% annually, compounding monthly. If investor pays
into this for 4 years, what’s his value in 4 years?
10,735.02 8,352.19 887.98 11,041.75
An investor is considering an investment that pays a cash flow of $200 annually in perpetuity....
An investor is considering an investment that pays a cash flow
of $200 annually in perpetuity. The first cash flow is in the 4th
year. If the interest rate is 12%, what is the present value of
this investment? (round your final answer to the nearest
dollar)
What is the present value of a security that will pay $30,000 in
20 years if securities of equal risk pay 5% annually? Assume annual
compounding. (round to the nearest dollar and do...
1. A real estate investor is considering an investment in a building that will generate profits...
1. A real estate investor is
considering an investment in a building that will generate profits
of $22,000 at the end of each year for the next 10 years. The
investor requires a 22% return on the investment to compensate for
the risk they are taking.
a. How much should the investor
pay today for the investment?
b. How much should the investor
pay today for the investment if profits at the then end of year 1
are $22,000, and...
An investor invests $500. The investment pays $100 at the end of year 2, $200 at...
An investor invests $500. The investment pays $100 at the end of
year 2, $200 at the end of year 3 and $300 at the end of year
4.
Calculate the net present value (NPV) of the investment using
interest preference rate of 5.7%.
----------------------------------------------
I got
v = 1/1.12
So would it just be NPV = -500 + 100(v)^2 + 200v^3 + 300v^4?
An advertised investment product promises to pay $439 per month for 74 months commencing in 1...
An advertised investment product promises to pay $439 per month
for 74 months commencing in 1 month from today.
If the investment earns 12.0% p.a compounding monthly, how much
will the investment product cost today? (round to nearest cent;
don’t use $ sign or commas) Select one:
a. $22877.57 b. $23106.35 c. $1839.59 d. $2060.34
Which form of investment is most appropriate for a first-time real estate investor that is concerned...
Which form of investment is most appropriate for a first-time
real estate investor that is concerned about liquidity and
diversification? (a) Direct ownership of an out-of-town office
building (b) Shares of a real estate investment trust (c)
Buy-to-let property in a residential area for young professionals
(d) Buy-to-let property for students
What are some ethical challenges in real estate and how the professional real estate investor and...
What are some ethical challenges in real estate and how the
professional real estate investor and broker should effectively
handle those ethical challenges?
A security is currently selling for $8,000 and promises to pay $1,000 annually for the next...
A security is currently selling for $8,000 and promises to pay
$1,000 annually for the next 9 years, and $1,500 annually in the 3
years thereafter with all payments occurring at the end of each
year. If your required rate of return is 7% p.a., should you buy
this security? a. No, because the return is less than 7%.
Yes, because the return is greater than 7%.
Yes, because the return is 7%.
Yes, because the present value at 7%...
How much would you pay today for an investment that pays $0 annually, but earns 8%...
How much would you pay today for an investment that pays $0
annually, but earns 8% annual interest and has a $13,500 face value
at the maturity at the end of 4 years?
How much would you be willing to pay today for an investment that promises to pay...
How much would you be willing to pay today for an investment
that promises to pay you pay $26,000 in 35 years if your required
return on the investment is 9% per year?
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