Rickie Fowler loans Joel Dahmen $$500,000.$ Fowler accepts an $8\%$ note, which requires semiannual interest payments for $10$ years. The day after receiving the $4^t$ interest payment, Fowler decides to sell the note to Rockland Trust. Rockland Trust agrees to purchase it to yield a $9\%$ return.

a$.$ What is the amount that Rickie Fowler will receive on the sale of the note to Rockland Trust?

b$.$ Prepare the entries that Rickie Fowler and Rockland Trust will make on the day the note is sold to the bank.

Wyndham Clark is interested in buying a condo and has saved $$100,000$ for the down payment. His plans call for making additional monthly deposits into an investment account over the next $36$ months.

Wyndham wants to make the purchase three years from today and wants to have $$200,000$ saved up for the down payment.

a$.$ What is the amount of each of the additional payments he must make for his plan to work out?

Assume Wyndham can earn $5\%$ annual return in his investment account.

b$.$ If Wyndham takes out a $30-$year, $$800,000$

mortgage at $7\mathrm{.}5\%,$ what will his mortgage payments be$?$

c$.$ Prepare an amortization schedule to prove that your answer is right, and his mortgage will be paid off in $30$ years.

d$.$ If Wyndham takes out a $20-$year, $$800,000$

mortgage at $6\%,$ what will his mortgage payments be$?$

e$.$ How much would Wyndham save if he took out a $20-$year mortgage versus a $30-$year mortgage?

Tom Kim started a clothing line. He signed a lease for a warehouse which costs $$15,000$ a year. The clothing line is too time$-$consuming, and he has asked you, as his accountant, to help him in determining the value of his company so he can sell it$.$

In year one, he is just working on production and will not have any sales. In years $2-5,$ he expects to have sales of $$400,000$ each year. Years, $6-10,$ sales are expected to grow to $$600,000$ each year. Years $11-20,$ he expects sales to be $$700,000$ a year and years $2130,$ annual sales will be $$750,000.$

During the first five years, expenses in addition to the lease are expected to be $$100,000$ a year. Years $6-20$ these expenses are projected to be $$150,000$ and years $21-30$ they will be $$125,000.$

Assume the relevant market rate of interest is $8\%$ and all receipts and payments are made at the end of each month$/$year$.$ The lease is transferable, and the buyer can assume the lease.