1.You have just obtained a 30 year fixed-rate fully amortizing $550,000 loan with an interest rate of 5.50% compounded monthly.What is your loan balance 10 years from now?

$453,975

$452,238

$287,750

$285,246

2.You are considering purchasing a small hotel in downtown Madison that is on the market for $4,275,000. The estimated Year 1 NOI is $300,000 per year and is expected to grow at 2.0% per year. You plan to sell the property at the end of the third year for $5,500,000. What is the IRR of this investment?

-50.36%

-49.78%

15.25%

15.37%

3.You are considering purchasing a small hotel in downtown Madison that is on the market for $5,500,000.The estimated Year 1 NOI is $250,000 per year and is expected to grow at 4.0% per year.You plan to sell the property at the end of thethirdyear for $6,250,000.What is the IRR of this investment?

12.85%

-57.35%

8.88%

8.52%

4.You are considering purchasing a small hotel in downtown Madison that is on the market for $7,550,000. The estimated Year 1 NOI is $250,000 per year and is expected to grow at 3.0% per year. You plan to sell the property at the end of the third year for $9,450,000. What is the IRR of this investment?

10.94%

-62.54%

10.85%

-40.44%