Given the following information about a fully amortizing loan, calculate the effective borrowing cost to the owner (EBC). Loan Amount: $180,000.00 Loan Amortization Term: 18 years Interest Rate: 5.00% compounded monthly Monthly Payment: $-1,265.46 Discount Points: 4 Other Closing Expenses:  $1,000.00 Assume the owner pays off the loan early at the end of year: 8

Assume that a piece of land is currently valued at $. If this piece of land is expected to appreciate at an annual rate of % per year for the next years, how much will the land be worth years from now?

Assume that an individual puts $ into a savings account that pays % interest, with interest being compounded monthly. The individual plans to withdraw the balance in years to buy a car. If he does not make any further deposits over this period, how much will the individual be able to put towards his purchase?

Suppose that an industrial building can be purchased today for $250,000.00. If it is expected to produce cash flows of $25,000.00 for each of the next 5 years (assume CFs are received at the end of each year) and can be sold at the end of the fifth year for $287,500.00, what is the internal rate of return (IRR) on this investment?

Given the following information about a fully amortizing loan, calculate the lender’s yield. Loan amount: $290,000.00 Term: 29 years Interest rate: 7.75% compounded monthly Monthly Payment: $-2,095.99 Discount points: 3.75

Suppose that an industrial building can be purchased today for $190,000.00. If it is expected to produce cash flows of $19,000.00 for each of the next 5 years (assume CFs are received at the end of each year) and can be sold at the end of the fifth year for $218,500.00, what is the internal rate of return (IRR) on this investment?

Given the following information about a fully amortizing loan, calculate the lender’s yield. Loan amount: $150,000.00 Term: 15 years Interest rate: 4.25% compounded monthly Monthly Payment: $-1,128.42 Discount points: 3.25

Suppose that an industrial building can be purchased today for $290,000.00. If it is expected to produce cash flows of $29,000.00 for each of the next 9 years (assume CFs are received at the end of each year) and can be sold at the end of the fifth year for $368,300.00, what is the internal rate of return (IRR) on this investment?

Given the following information about a fully amortizing loan, calculate the lender’s yield. Loan amount: $300,000.00 Term: 30 years Interest rate: 8.00% compounded monthly Monthly Payment: $-2,201.29 Discount points: 4

Given the following information on fixed-payment fully-amortizing loan, determine the remaining balance that the borrower has at the end of years. Loan term:  Monthly Payment:  Interest Rate:  % Balloon payment/remaining mortgage balance (RMB) in years