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Investments | Please provide answers in excel 2. An investor bought a $200,000 property, 5 years ago by putting 5% down (5% of the value
Investments | Please provide answers in excel
2. An investor bought a $200,000 property, 5 years ago by putting 5% down (5% of the value of
the property) and financing the rest using a 15 year loan with a rate of 3.6%.
Determine the monthly payment.
Today the property is worth $300,000.
What is the monthly growth rate for the value of the property? (Answer should have two decimal
points with percentage, e.g. 0.35%)
How much equity is in the property today?
What percent of the equity today is due to the rise in the value of the property and what percent is due to the paying down of the loan?
The investor gets $1500 a month in rent starting at month one.
If the property is sold today, what would be the rate of return on this investment? (think IRR, inflows and outflows, when and how much)
Create a data table with the annual rate of return as the output variable. The row imput is the down payment, start at 5% and go to 20% in increments of 5%. The column input is the monthly rent, start at $1000 and go to $3000 in increments of $500.
What has the bigger effect on the annual return, the change in the down payment or the change in the rent? Explain.
If the investor wanted to owe $50,000 on the loan after 10 years, how much must be added to the payment each month starting at month one?
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