Assume an appraiser has been hired to appraise a local college. His best estimate of the reproduction cost of the building is $4,000,000 Yet upon the evaluating the use of the land, the appraiser have deemed the valuse of the site to be worth $1,100,000. If the building has depreciated by $800,000 over its lifetime and there are no further depreciated losses due to external or financial obsolescence, what is the market value of the college using the cost approach.
Joel Barish is considering to purchase a new apartment in Rockville Center, NY using a 30 year mortgage that would cost him $378,000 with an interest rate of 7.2%. Suppose the lender of the mortgage loan requres 2.5% in closing costs, what would be the APR of this loan?
Clementine Kruczynski is considering to borrow $250,000 through a 15 year 1/1 hybrid adjustable rate morgage to purchase a single- family home. The loan has a teaser rate of 5.52%. After the 12th payment, the loan adjusts annually to 275 basis point above the current 1 year LIBOR rate which is 3.13%. The mortgage is fully amortized and mortgage payments are made at the end of each month until maturity. Determine the size of the 13th payment that is attributed to interest repayment.