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1. Suppose you pay $200,000 today for a real estate investment. You expect to earn $24,000 per year on the investment, with payments being made
1. Suppose you pay $200,000 today for a real estate investment. You expect to earn $24,000 per year on the investment, with payments being made to you at the end of each month. Given these data, what will be your expected annual percent return (i) on this investment after seven years?
2.
Given in the table is the information for two loans, Loan 1 charges no points, Loan 2 does charge points. The buyer is assumed to live in the house. For how many years will the homeowner need to live in the house to make it financially worthwhile to pay the points to get the lower interest rate? Loan 1 PV Loan 2 3 Points PV No Points $800,000 6.25% 30 11 N $800,000 6.10% i2 N 30 m 12 m 12 MacBook Air 000 000 F FS F7 FB 49Step by Step Solution
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