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A friend pitches you the opportunity to invest in one of his deals. She claims the property will earn a total return of 15%. Shes

A friend pitches you the opportunity to invest in one of his deals. She claims the property will earn a total return of 15%. Shes planning on using a 75% LTV mortgage at 6% to acquire the property. What is the estimated return to you, the equity investor?

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12.75%

None of these are correct

37%

30%

42%

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