QUESTION TWO Finozest Solutions wish to purchase an apartment in Kabulonga which is situated in...
90.2K
Verified Solution
Link Copied!
Question
Finance
QUESTION TWO
Finozest Solutions wish to purchase an apartment in Kabulonga which is situated in a tree-lined avenue. The purchase price, with costs, is K710,000 and it is able to obtain a 100% mortgage loan at an interest rate of 6%, interest compounded monthly. The term of the loan is 20 years. The property values are expected to rise at a rate of 9% per year (0.75% per month). Finozest Solutions will be able to rent out the apartment after costs at a rate of K4,000 per month for the first year. Interest and rent are payable at the beginning of each month.
Required:
What is the expected value of the apartment in 20 years-time? What is the mortgage loan repayment at the beginning of each month? What is the net amount that Finozest Solutions has to pay in each month.
Total [20 marks]
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.