Question
In: Finance
1. You are interested in buying a 2-bedroom condo in Cincinnati. The price is $300,000. You...
1. You are interested in buying a 2-bedroom condo in Cincinnati. The price is $300,000. You have a 30-year 3% APR mortgage with 20% down payment.
a. What would be the monthly mortgage payment?
b. Suppose you rent the property out and the rental you collect will just cover the
mortgage payment. You plan to keep the property till the mortgage matures and do not plan to make any pre-payment. What is your annual investment return (please calculate the bond-equivalent yield)?
c. You rent the apartment out for $2,000/month. The operating expense is $200. Assume the house value will increase by 30% after 30 years. Calculate the expected annual return of your investment. (Hint: compute IRR for the investment)
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Billy McMahon is interested in buying a waterfront condo and has saved $100,000 for the down...
Billy McMahon is interested in buying a waterfront condo and has
saved $100,000 for the down payment. His plans call for making
additional monthly deposits into an investment account over the
next 36 months. Billy McMahon wants to make the purchase 48 months
from today and wants to have $180,000 saved up for the down
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A) What is the amount of each of the additional payments he must
make for his plan to work out? Assume Billy can earn...
Billy McMahon is interested in buying a waterfront condo and has saved $100,000 for the down...
Billy McMahon is interested in buying a waterfront condo and has
saved $100,000 for the down payment. His plans call for making
additional monthly deposits into an investment account over the
next 36 months. Billy McMahon wants to make the purchase 48 months
from today and wants to have $180,000 saved up for the down
payment.
a. What is the amount of each of the additional payments he must
make for his plan to work out? Assume Billy can earn...
Billy McMahon is interested in buying a waterfront condo and has saved $100,000 for the down...
Billy McMahon is interested in buying a waterfront condo and
has saved $100,000 for the down payment. His plans call for making
additional monthly deposits into an investment account over the
next 36 months. Billy McMahon wants to make the purchase 48 months
from today and wants to have $180,000 saved up for the down
payment.
What is the amount of each of the additional payments he must
make for his plan to work out? Assume Billy can earn 2%...
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You have just borrowed $300,000 to buy a condo. You will repay the loan in equal...
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condo 893 sqft
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2 baths 673
Built in 2006
131 days on Trulia
Description:
New washer/dryer, fresh paint in living and kitchen in October.
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