5-Five years ago, you put $20,000 into an interest-earning account. The interest rate is compounded...
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5-Five years ago, you put $20,000 into an interest-earning account. The interest rate is compounded monthly. Today your deposit is worth $30,000. What is the effective annual interest earned on the account?
6-An investor buys a 10 unit rental property for $1,000,000. The investor believes that each unit can provide net cash returns of $2,000 per month for 10 years, at which point it can be sold for $2,750,000. What is the internal rate of return (IRR) on the investment?
7-Given the following information on a fixed-rate fully amortizing loan, determine the maximum amount that the lender will be willing to provide to the borrower. Loan Term: 30 years, Monthly Payment: $2,500, Interest Rate: 5% (annual rate compounded monthly).
8-An investment that costs $105,000 today is expected to produce the following cash inflows over each of the next five years: $20,000; $25,000; $23,000; $22,000; $21,000. What is the IRR (compounded annually) for this investment?
9-A lender makes a $100,000 mortgage at 3.5% interest with monthly payments for 15 years. How much principal will be repaid during the first year of the loan?
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