A single $100,000 payment is received at the end of year 5. Using annual compounding at a 7.000000000000001% discount rate, what is its present value, rounded to the nearest dollar?
Correct Answer
B) $71,299
100000÷(1+0.07)^5 = 71298.61794836682. Use the specified inputs and convention only; this numerical result does not independently establish the market support for the assumptions.
Why This Is the Correct Answer
100000÷(1+0.07)^5 = 71298.61794836682. Use the specified inputs and convention only; this numerical result does not independently establish the market support for the assumptions.
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Using the stated $500,000 property value as the denominator and a loan of $375,000, what is the loan-to-value ratio?
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An investor’s initial cash equity investment is $300,000. The property generates annual before-tax cash flow to that equity of $45,000 after debt service. What is the annual equity dividend (cash-on-cash) rate, rounded to two decimal places?
