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Assignment 1

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Snapchatkitah Asiangal69
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17 views

Assignment 1

Uploaded by

Snapchatkitah Asiangal69
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Question 1:

a) Calculating the monthly payment using the PMT func with the following inputs:

Rate = 5.15%/12
Nper = 360
PV = $4,250,000.00

Therefore, PMT = $23,206.11

b) Balance after 5 years is calculated using the FV func using the following inputs:

Rate = 5.15%/12
Nper = 60 (for 5 years)
PV = $4,250,000.00
PMT = $23,206.11

Therefore, the balance after 5 years = $3,910,949.80

Question 3:

a) Purchase Price

$2,250,000.00 = x * 60/100
x = $ 3,750,000.00

b) Monthly Rate during the 5-year term

Monthly rate = 0.005709546 (Appendix for calculation)

Then using the PMT func, the monthly mortgage was calculated with the following inputs:

Rate = 0.005709546
PV = $ 2,250,000.00
Nper = 240

Therefore, PMT = $17,244.17

c) Monthly Rate the 6-year renewal term

1. The remaining balance after the 5-year term was found using the FV function with
inputs:
Rate = 0.005709546
Nper = 60
PMT = $17,244.17
PV = $ 2,250,000.00

Therefore, Balance after 5-year term = $1,936,363.91

2. Now calculating for the monthly payments for the 6-year renewal term

Monthly rate = 0.006880554 (Appendix for calculation)

Then using the PMT func, the monthly mortgage was calculated with the following
inputs:

Rate = 0.006880554
PV = $1,936,363.91

Nper = 180 (for the remaining years: [20-5]*12)

Therefore, PMT = $18,792.96

d) First finding the monthly payments for the 11-year term mortgage

Monthly Rate = 0.006517866 (Appendix for calculation)

Then using the PMT func, the monthly mortgage was calculated with the following inputs:

Rate = 0.006517866
PV = $ 2,250,000.00
Nper = 132

Therefore, PMT = $25,468.95

Question 5:

First calculating the sale price at Y4 using cap rate of 6.25% and Y5 Cash Flow = $198,500.00
$198,500.00/6.25% = $3,176,000.00

Now using the NPV func, the value of the property was found using the net cashflows from Y1
to Y4. (Appendix for Calculation)

Property Value = $2,998,420.12

Question 7:

Sq. Footage of the Subject = 425,000

Comparable
Sale date Recent
$
Price 146,250,000.00
Sq. Footage 585,000
Sale price per sq. footage $ 250.00
Adjustments
Ceiling, Quality & Condition -4.50%
Location 3%
Net Difference -1.50%
Adjusted Price/sq. footage $ 246.25

Therefore, the estimated value of the subject:

$246.25*425,000 = $104,656,250.00

Question 9: (Appendix for Calculations)


Question 1:

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