Practical Task No. 8: Interest Rates: Mortgage Loan Calculations
Practical task No.8: Interest Rates. Mortgage Loan Calculations: until November 23
Individual work. Assignment for those students, who did not attend the lectures and did not perform the task in a class. Assignment definitions consist of 16 tasks given below. Use lectures material and provided list of literature.
1) An individual makes a bank deposit of 10,000 euro that is compounded at an annual interest rate of 6 percent, what will be the value of the deposit at the end of one year? Please provide calculations applying both approaches: apply an appropriate formula (manual calculation) and use appropriate function in Excel.
2) An individual makes a bank deposit of 10,000 euro at an annual interest rate of 6 percent, what will be the value …show more content…
Please provide calculations, apply an appropriate formula (manual calculation) and give an answer.
[1] $15,987.21
[2] $10,213.68
[3] $13,450.65
[4] $6,344.43
7) An investor has an opportunity to invest in a rental property that will provide net cash returns of $1,500 per year for five years. The investor believes that an annual return of 10% should be earned on the property. How much should be paid for the property? Please provide calculations, apply an appropriate formula (manual calculation) and give an answer.
[1] $5,248.26
[2] $5,686.18
[3] $6,431.23
[4] $6,862.97
8) An investor decides to buy 100 shares of XYZ stock at $33. Before purchasing the shares, he/she decides that he/she will sell if the price drops to $30 a share. This way, he/she knows in advance that his/her maximum loss or risk, will be limited to $....., or a …..% loss. The investor would also choose an exit point for an increase in the stock's price, say, $.... Please provide calculations, apply an appropriate formula (manual calculation), complete the missed parts in a text and provide argumentation to your choice of the exit …show more content…
Common area 160,000 sq.ft.
Number of tenants 40
Financial Information:
Avg. Base Rent $20.00 per sq.ft.
Overage Rents (5 tenants) $8.00 per sq.ft.
Overage Rents (5 tenants) 50,000 sq.ft.
CAM Expenses Recoverable from Tenants $5.00 per sq.ft.
Avg. Lease Term 3.5 yrs.
Vacancy 10.00% of total rental revenue
Operating Expenses:
Maintenance / Repair $ 1,200,000.00
Mgmt/admin/Leasing Expenses $ 230,000.00
Property Taxes $ 1,715,000.00
Insurance $ 105,000.00 other 0
Other Information:
Recurring CAPEX/Improve Allowance $ 160,000.00
Question: From the above data, develop a pro forma statement in Excel for a base year showing net operating income (NOI) for Summer Place.
Additional information: theory provided in Brueggeman, W. B., & Fisher, J. D. (2011). Real estate finance and investments. New York: McGraw-Hill Irwin. Chapter 9 “Income-Producing Properties: Leases, Rents, and the Market for Space”
Submit the file of your answers to the system by “Add submission” or send to the lec-turer via e-mail:
Individual work. Assignment for those students, who did not attend the lectures and did not perform the task in a class. Assignment definitions consist of 16 tasks given below. Use lectures material and provided list of literature.
1) An individual makes a bank deposit of 10,000 euro that is compounded at an annual interest rate of 6 percent, what will be the value of the deposit at the end of one year? Please provide calculations applying both approaches: apply an appropriate formula (manual calculation) and use appropriate function in Excel.
2) An individual makes a bank deposit of 10,000 euro at an annual interest rate of 6 percent, what will be the value …show more content…
Please provide calculations, apply an appropriate formula (manual calculation) and give an answer.
[1] $15,987.21
[2] $10,213.68
[3] $13,450.65
[4] $6,344.43
7) An investor has an opportunity to invest in a rental property that will provide net cash returns of $1,500 per year for five years. The investor believes that an annual return of 10% should be earned on the property. How much should be paid for the property? Please provide calculations, apply an appropriate formula (manual calculation) and give an answer.
[1] $5,248.26
[2] $5,686.18
[3] $6,431.23
[4] $6,862.97
8) An investor decides to buy 100 shares of XYZ stock at $33. Before purchasing the shares, he/she decides that he/she will sell if the price drops to $30 a share. This way, he/she knows in advance that his/her maximum loss or risk, will be limited to $....., or a …..% loss. The investor would also choose an exit point for an increase in the stock's price, say, $.... Please provide calculations, apply an appropriate formula (manual calculation), complete the missed parts in a text and provide argumentation to your choice of the exit …show more content…
Common area 160,000 sq.ft.
Number of tenants 40
Financial Information:
Avg. Base Rent $20.00 per sq.ft.
Overage Rents (5 tenants) $8.00 per sq.ft.
Overage Rents (5 tenants) 50,000 sq.ft.
CAM Expenses Recoverable from Tenants $5.00 per sq.ft.
Avg. Lease Term 3.5 yrs.
Vacancy 10.00% of total rental revenue
Operating Expenses:
Maintenance / Repair $ 1,200,000.00
Mgmt/admin/Leasing Expenses $ 230,000.00
Property Taxes $ 1,715,000.00
Insurance $ 105,000.00 other 0
Other Information:
Recurring CAPEX/Improve Allowance $ 160,000.00
Question: From the above data, develop a pro forma statement in Excel for a base year showing net operating income (NOI) for Summer Place.
Additional information: theory provided in Brueggeman, W. B., & Fisher, J. D. (2011). Real estate finance and investments. New York: McGraw-Hill Irwin. Chapter 9 “Income-Producing Properties: Leases, Rents, and the Market for Space”
Submit the file of your answers to the system by “Add submission” or send to the lec-turer via e-mail: