Dominique has just turned 58 and she has deposited her annual payment of $15,000 into her retirement account. She made her first such saving deposit into this fund on her 31st birthday. Dominique has also retired and wants to figure out how much money she has in her retirement account for her retired life. You are Dominique's friend who knows finance. How much is Dominique's savings worth today given that the fund has earned an annual return of 3.0%? 

Question:

Huiling owns a rental property on Main street, but she is considering selling the property to another real estate investor. In preparation for negotiating a price, Huiling wants to know the value of the property. The Net Operating Income (NOI) is the cash flow from real estate and the Cap Rate is the rate, where NOI is rental revenue less all expenses except loan servicing. The property has an NOI of $21,000 per year. The local real estate market has a cap rate of 8%. What is a fair price for the property assuming that the building's remaining life is 25 years? 

 

Question 

Melanie and Stephen Jackson are purchasing their first house. The house costs $340,000. They have put a 10% down payment (that is, an amount that banks should require you to pay out-of-pocket), but will therefore finance the rest. They are considering a fixed rate 15-year mortgage at a 6.25% APR with monthly payments. How much will the Jacksons' first monthly payment be?

Answer rating: 100% (QA)

SOLUTION To calculate Dominiques savings worth today we can use the formula for compound interest A ... View the full answer