Question A4

Peter, a property investor, is seeking to invest in a potential property. There are two properties he identified for selection. Below are the properties past transaction record extracted from http://hk.centanet.com/info/index.

District Causeway Bay Mongkok

Required:

Last hold (years) 15

10

Last purchase price $2,750,000 $2,585,000

Latest selling price $8,525,000 $7,236,000

Based on the above information, advise him which district he should invest.

Question A5

(Total 6 marks)

David borrowed a loan from Bank A for $15,000 for buying a car. The loan is for five years and is fully amortized. The effective annual rate on the loan is 16.08 percent, and payments are made at the end of each month. Early payment will impose two months interest as penalty.

Required:

If David wants to make early full payment right away after the 30th payment, advise him the total amount.

End of Section A

(Total 6 marks)

Question A4 Peter, a property investor, is seeking to invest in a potential property. There are two properties he identified for selection. Below are the properties past transaction record extracted from http://hk.centanet.com/info/index. District Last hold (years) Last purchase price Latest selling price Causeway Bay 15 $2,750,000 $8,525,000 Mongkok 10 $2,585,000 $7,236,000 Required: Based on the above information, advise him which district he should invest. (Total 6 marks) Question AS David borrowed a loan from Bank A for $15,000 for buying a car. The loan is for five years and is fully amortized. The effective annual rate on the loan is 16.08 percent, and payments are made at the end of each month. Early payment will impose two months interest as penalty Required: If David wants to make early full payment right away after the 30th payment, advise him the total amount (Total 6 marks)