1. How much should you pay for a 10 lot subdivision if you require a 19% rate of return, no lots will be sold the first 3 years, and then you will sell one lot every 6 months until the lots are sold out. The lots will sell for 12,000 each. Therefore, the first cash flows is received in the middle of the fourth year.
2. You are analyzing a GPM. The term are $60,000 loan amount, 9% note rate , 30 years , monthly payments, 0 FV, payment in year one based upon 7% and payment in year two based on 8%. How much will you owe on this loan at the end of the second year?
3. A Japanese investor purchases an office building for 100,000 when the exchange rate was 100 yen/1$. One year later he sold the building for 110,000 when the exchange rate was 80 yen/1$. What was his profit in Yen? What rate of return did he earn in Yen?
4. An apartment building has 6 rental units. Three of the units are 1BR-1BA and rent for $350 per month and three of unit are 2BR-2BA units which rent for $450 per month. The vacancy and credit loss is assumed to be 10%. Fixed expenses are$3,600 per year and variable expenses are 25% of EGI. If loan terms are 25 years, monthly payment, 8% interest rate, DCR=1.2 and 0 FV. What is the maximum size loan this property will support?
5. You got a 10% , 0 FV, 75,000, 30 year loan, with monthly payments. What would be the effective interest rate on the 10% loan with the following addition loan features?

a. you paid 3 points, there was no prepayment penalty (PPP) and you paid the loan off at the end of the 10th year

b. you paid 3 points, there was a 2% PPP and you paid the loan off at the end of the 10th year

c. you paid 3 points, there was a 2% PPP and you did not pay off the loan early.