ANSWER THE FOLLOWING QUESTIONS BY NUMBER: 1. Sarah is planning to purchase her own home as her first real estate investment. The home is selling for $200,000 and she needs a 20% down payment. The loan will be for 30 years at 3.5% interest. What is Sarah's monthly payment? 2. How much money would Sarah save over the life of the loan if she obtained a 15-year loan at the same rate? 3. If Sarah did not have the down payment and could save $850 per month at 2% APR compounded monthly, ho long would Sarah have to save before she had the required down payment? 4. Ben has a home and is ready to purchase his first rental property. Ben found a property that needs some work he can get a low price. He will use his own cash. The home is listed for $125,000 and it will need about $25,000 of rehab expense while he does the work himself over one year, at which time he will rent it out. He thinks that he will wait until the second year to do the roof and replace the HVAC system for $15,000. This area rents homes this size for $1,850 per month. Ben anticipates selling the rented, renovated home at the end of 5 years for $185,000 and moves on to something bigger. If Ben wants at least 11% on his money, what is the most that he should pay for this home? 5. If Ben pays the asking price, what is his IRR? ANSWER THE FOLLOWING QUESTIONS BY NUMBER: 1. Sarah is planning to purchase her own home as her first real estate investment. The home is selling for $200,000 and she needs a 20% down payment. The loan will be for 30 years at 3.5% interest. What is Sarah's monthly payment? 2. How much money would Sarah save over the life of the loan if she obtained a 15-year loan at the same rate? 3. If Sarah did not have the down payment and could save $850 per month at 2% APR compounded monthly, ho long would Sarah have to save before she had the required down payment? 4. Ben has a home and is ready to purchase his first rental property. Ben found a property that needs some work he can get a low price. He will use his own cash. The home is listed for $125,000 and it will need about $25,000 of rehab expense while he does the work himself over one year, at which time he will rent it out. He thinks that he will wait until the second year to do the roof and replace the HVAC system for $15,000. This area rents homes this size for $1,850 per month. Ben anticipates selling the rented, renovated home at the end of 5 years for $185,000 and moves on to something bigger. If Ben wants at least 11% on his money, what is the most that he should pay for this home? 5. If Ben pays the asking price, what is his IRR