J&M Company is a real-estate developer considering a 40-unit apartment complex in a growing college town. As the area is also booming with foreign automakers locating their US assembly plants, the firm expects that the apartment complex, once built, will enjoy a 90% occupancy for an extended period. The firm already compiled some of the critical financial information related to the development project as follows:  Land price (1 acre) = $1,200,000  Building (40 units of single bedroom) = $4,800,000  Project life = 25 years  Building maintenance per unit per month = $100  Annual property taxes and insurance = $400,000 Assuming that the land will appreciate at an annual rate of 5%, but the building will have no value at the end of 25 years (it will be torn down and a new structure would be built), determine the minimum monthly rent that should be charged if a 12% return (or 0.9489% per month) before tax is desired.

Explanation:

Salvage value = price(1+i)^n; i -interest rate; n-time period

Salvage value = 1,200,000*(1+0.05)^25 = 4,063,680

Monthly rent = ((price+building cost) - salvage value)*(i(1+i)^n/[(1+i)^n-1]) +

+ i*salvage value  + maintenance cost*12*number of buildings + insurance and property tax) * (return/[(1+i)^n-1]) =

((1,200,000+4,800,000)-4,063,680)*(0.12*(1+0.12)^25/[(1+0.12)^25 -1]) + 0.12*4,063,680 + (100*12*40) +400,000)*(0.009489/[(0.009489 +1)^12 -1]) =

= (6,000,000 - 4,063,680)*2/16 + 487,641.6+ 48,000 + 400,000) * 0.0791 =

=( 1,936,320 * 0.125 + 487,641.6 + 448,000) * 0.0791 =

= (249,398.016 +487,641.6+448,000)*0.0791 = 97.636.63

So the minimum monthly rate is 97.636.63

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number