Posted by Mary on Wednesday, November 13, 2013 at 2:02pm.
PLZZZ.. Help I just don't understand how to calculate this
A landlord wants to acquire an additional apartment building for $250,000. The new building contains eight apartment units, which will each rent for $500 per month. The bank is willing to loan the landlord the money for a long-term, 30-year loan at a 5.5 percent interest rate. Calculate the monthly payment, and explain whether taking this loan for the new building is a smart business decision.
- U.S. and Global Economics: Involving MATH - Ms. Sue, Wednesday, November 13, 2013 at 2:08pm
250,000 * 0.05 * 30
I = 375,000
250,000 + 375,000 = 625,000
625,000 / 360 = 1,736.11 monthly payment
Compare the monthly payment with the amount of rent he expects to receive each month.
- U.S. and Global Economics: Involving MATH - Mary, Wednesday, November 13, 2013 at 2:09pm
thx so much!!!!!
- U.S. and Global Economics: Involving MATH - Ms. Sue, Wednesday, November 13, 2013 at 2:10pm
- objection - U.S. and Global Economics: Involving MATH - Reiny, Wednesday, November 13, 2013 at 8:28pm
Ms Sue used the concept of simple interest.
This is a longterm annuity type question and has to be done with compound interest.
i = .055/12 = .0045833.... , n = 12(30) = 360
let the monthly payment be P
250000 = P( 1 - 1.00458333...^-360)/.00458333..
P = 1419.47
- U.S. and Global Economics: Involving MATH - Mary, Friday, November 15, 2013 at 10:50am
Answer this Question
- math - Matthew parks his car between Karen’s and Patrick’s apartment buildings. ...
- geometry - Benji is 55 ft from the base of his apartment building in New York ...
- economics - Week 3 Homework Please answer the following questions: 1. The ...
- economics - Review: Full, Anonymous: No Week 3 Homework Please answer the ...
- Programming Logic and Design - Mr. Roper owns 20 apartment buildings. Each ...
- math - The model of a new apartment building is 10 in, x 28 in x 18 in. the ...
- Math - –37of the people who live in an apartment building are men. 58of the ...
- Math - 3/7 of the people who live in an apartment building are men. 5/8 of the ...
- math - Write and solve an equation to model the situation: two friends are ...
- math - A new apartment building was sold for $125000 4 years after it was ...