Question
Complete the attached worksheet. Please show all work 5) Rose invests $20,000 in a real estate deals and earns $400/month for the first year.What is
Complete the attached worksheet. Please show all work
5) Rose invests $20,000 in a real estate deals and earns $400/month for the first year.What is her return on investment?
6) If you double your investment in a year, what is your ROI?
7) Dave wants to take a year off work and has determined to accumulate enough savings to be able to withdraw $1500/month during that year.He has 4 years to accomplish this goal and can earn 4 % interest on his savings.How much does he need to deposit each month to achieve this goal?
8) What would your car payment be if you financed a car for $18,450 over 3 years at an interest rate of 5%?How would that payment change if you financed it over 5 years at a rate of 4%?Which is the better deal? Defend your answer.
9) MarV, Inc. is considering adding a new wing to their Assisted Living Facility.One option is to borrow the money on a 15-year mortgage at 7.5% APR.The total cost of the expansion is expected to be $3.3 million.What would their monthly payment on this mortgage be?What if they made annual payments instead, but had to pay 8.25%?Show the difference in payments and the difference in total costs.Suggest reasons for and against each alternative.
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