A building is expected to require $1,000,000 in capital improvement expenditures in five years (60 months). The buildings net operating cash flow prior to that time is expected to be at least $20,000 at the end of every month. How much of that monthly cash flow must the owners set aside each month in order to have the money available for the capital improvements, assuming monthly interest rate is 1.5%?

A $14,332.83

B $13,609.73

C $12,666.67

D $10,393.43

A real estate investor feels that the cash flow from a property will enable her to pay a lender $20,000 per year, at the end of every year, for eight years. How much should the lender be willing to loan her if he requires a 7.5% annual interest rate (monthly compounded, assuming the first of the eight equal payments arrives one year from the date the loan is disbursed)?

$117,146.07

$115,972.58

$1,440,520.49

$1,426,874.54

A tenant offers to sign a lease paying a rent of $2,500 per month for 10 years (120 months). At 0.75% of monthly interest rate, what is the present value of this lease?

$188,354.23

$197,354.23

$153,384.91

$155,384.91