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Real Estate Investment Review Materials

(Any questions?  E-mail the Problem Set number and question number and we will review in-class.)

Problem Set 1:

  1. 24,464.43
  2. 25,093.31
  3. 1,738.91
  4. 4,755.19
  5. 675,764.89
  6. 14,381.74

Problem Set 2:

  1. 10% compounded semi-annually (1.05^2 = 1.1025; 1.0238^4 = 1.0984)
  2. 19,236.15
  3. 98,111.31
  4. 5,575.46
  5. 22,601.66
  6. 15.94%
  7. 6,357.56

Problem Set 3:

  1. ANN: 15 – 25,288.30 25-20,519.45  MO: 15-2,067.95 30-1614.72
  2. 14,043.41
  3. Yes, NPV = 10,850.30
  4. 13.22%
  5. PMT = 103,873.36
    1. Balance end of year 5 equals 961,283.21
    2. Balance end of year 15 equals 801,472.49
  6. PV = 854,972.16
  7. 79,612.63 + 220,436.31 = 300,048.94
  8. PMT = 638.58 (724.26 – 638.58 = 85.68)
  9. IRR = 16.2%; NPV = 1,306.20
  10. 68,640.81

Problem Set 4:

  1.  a) 19,876.60                b) 1,903,479.15
  2. 48,076.30 + 159,263.83 = 207,340.13
  3. Investment 1 IRR = 9.57%       Investment 2 IRR = 10.18% or 9.94% assuming annual compounding
  4. N=60, I = 12%, Pmt = 657.56, FV= 88,000 then 657.56 (pmt) + 120.00 (taxes, insurance, maintenance) = $777.56 rent
  5. $1,365.86
  6. 8.5%
  7. 12.14%
  8. NPV = $209.94                       IRR = 12.27%
  9. a) 10.36%        b) 4,378.29
  10. 163,028.46
  11. 1,294.88
  12. 137,243.36

Geltner & Miller Presentation Aids

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