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the blank boxes in the spread sheet below (20pts) Real Estate Investment Analysi

ID: 2807034 • Letter: T

Question

the blank boxes in the spread sheet below (20pts) Real Estate Investment Analysis Asking price $1,100,000.00 0.00% 25.00% ofrets of EGI (no stops ) payments per year 30 years Assume value of property will grow at this rate Appreciation rate holding period selling costs Building value 4.00% 3 years 0,000% 80.00% 29 35.00% of sales of asking price years (All taxes) 67 00 equity annual loan pymt mortgage bal Year 3 of loan end of year payment mortgage balance Principal Before tax cash flow debt service before tax CF Page 6

Explanation / Answer

SCHEDULE SHOWING MONTHLY PAYMENT OF INTEREST AND INSTALLMENT IN YEAR 1

SCHEDULE SHOWING MONTHLY PAYMENT OF INTEREST AND INSTALLMENT IN YEAR 2

52471

SCHEDULE SHOWING MONTHLY PAYMENT OF INTEREST AND INSTALLMENT IN YEAR 3

5011

SUMMARY OF LOAN INFORMATION

NOTE : WE HAVE ASSUMED RATE OF INTEREST P.A AS NOT MENTIONED IN QUESTION AND INSTALLMENT PER MONTH IS AS 880000/12*30 =880000/360= 2444.

PARTICULARS 1 2 3 4 5 6 7 8 9 10 11 12 PRINCIPAL OUTSTANDING 880000 877556 875112 872668 870224 867780 865336 862892 860448 858004 855560 853116 INTEREST 5500 5484 5469 5454 5439 5423 5408 5393 5378 5363 5347 5331 INSTALLATION 2444 2444 2444 2444 2444 2444 2444 2444 2444 2444 2444 2444 BALANCE 877556 875112 872668 870224 867780 865336 862892 860448 858004 855560 853116 850672