+1(978)310-4246 credencewriters@gmail.com
  

Finish problems in the word document.Chapter 9 problems:

1. Jack purchases a house for $90,000 and spends $15,000 to renovate it. He holds the house for
35 years and then sells it in middle of a real estate bubble for $400,000. On how much of that
amount does he have to pay taxes?

2. Mary purchased a home for $200,000. By living in the home, she saved $18,000 annually
because she did not have to pay rent. She had to pay $3000 annually for upkeep of the home. By
the end of the first year, the home price had appreciated to $210,000. What was her return for the
first year (considering assumed rents)?

3. Josh earns $80,000 a year. He would like to purchase a home and applies for a mortgage from
the bank. The bank requires that the debt not exceed 28 percent of his annual income. With the
current down payment he is willing to pay, his monthly mortgage payment will be $1,600. In
addition, he will have to pay $4,000 annually for tax and insurance. Will the bank approve his
loan?

4. Harry decides to purchase an apartment building as an investment. He pays $6,000,000 for the
building. The building has a net income of $150,000, annual depreciation $150,000, annual taxes
of $75,000, and annual interest payments of $105,000.
a. Calculate the building’s cap rate.
b. One year later, the price of the building goes up to $7,000,000. Calculate the new cap rate.

5. Why is the home often a better investment than renting? Under what circumstances would renting be preferred?Second Editin

PESONAL
FINACIAL
PLANNING

Lewis J. Altfest

Personal Financial
Planning

FINANCIAL MANAGEMENT

Block, Hirt, and Danielsen
Foundations of Financial
Management
Sixteenth Edition

Brealey, Myers, and Allen
Principles of Corporate
Finance
Twelfth Edition

Brealey, Myers, and Allen
Principles of Corporate
Finance, Concise
Second Edition

Brealey, Myers, and Marcus
Fundamentals of Corporate
Finance
Eighth Edition

Brooks
FinGame Online 5.0

Bruner, Eades, and Schill
Case Studies in Finance:
Managing for Corporate
Value Creation
Seventh Edition

Cornett, Adair, and Nofsinger
Finance: Applications
and Theory
Third Edition

Cornett, Adair, and Nofsinger
M: Finance
Third Edition

DeMello
Cases in Finance
Second Edition

Grinblatt (editor)
Stephen A. Ross, Mentor:
Influence through Generations

Grinblatt and Titman
Financial Markets and
Corporate Strategy
Second Edition

Higgins
Analysis for Financial
Management
Eleventh Edition

Kellison
Theory of Interest
Third Edition

Ross, Westerfield, Jaffe,
and Jordan
Corporate Finance
Eleventh Edition

Ross, Westerfield, Jaffe,
and Jordan
Corporate Finance: Core
Principles and Applications
Fourth Edition

Ross, Westerfield, and Jordan
Essentials of Corporate
Finance
Ninth Edition

Ross, Westerfield, and Jordan
Fundamentals of Corporate
Finance
Eleventh Edition

Shefrin
Behavioral Corporate
Finance: Decisions that
Create Value
First Edition

White
Financial Analysis with an
Electronic Calculator
Sixth Edition

INVESTMENTS

Bodie, Kane, and Marcus
Essentials of Investments
Tenth Edition

Bodie, Kane, and Marcus
Investments
Tenth Edition

Hirt and Block
Fundamentals of Investment
Management
Tenth Edition

Jordan, Miller, and Dolvin
Fundamentals of Investments:
Valuation and Management
Seventh Edition

Stewart, Piros, and Heisler
Running Money: Professional
Portfolio Management
First Edition

Sundaram and Das
Derivatives: Principles
and Practice
Second Edition

FINANCIAL INSTITUTIONS
AND MARKETS

Rose and Hudgins
Bank Management and
Financial Services
Ninth Edition

Rose and Marquis
Financial Institutions
and Markets
Eleventh Edition

Saunders and Cornett
Financial Institutions
Management: A Risk
Management Approach
Eighth Edition

Saunders and Cornett
Financial Markets and
Institutions
Sixth Edition

INTERNATIONAL FINANCE

Eun and Resnick
International Financial
Management
Seventh Edition

REAL ESTATE

Brueggeman and Fisher
Real Estate Finance and
Investments
Fifteenth Edition

Ling and Archer
Real Estate Principles:
A Value Approach
Fourth Edition

FINANCIAL PLANNING
AND INSURANCE

Allen, Melone, Rosenbloom,
and Mahoney
Retirement Plans: 401(k)s,
IRAs, and Other Deferred
Compensation Approaches
Eleventh Edition

Altfest
Personal Financial Planning
Second Edition

Harrington and Niehaus
Risk Management and
Insurance
Second Edition

Kapoor, Dlabay, Hughes,
and Hart
Focus on Personal Finance:
An active approach to help
you achieve financial literac

  
error: Content is protected !!