Question
A property is sold for $240,000. Typical financing terms are an 85% loan with an 8% interest rate over 15 years with monthly payments. If
A property is sold for $240,000. Typical financing terms are an 85% loan with an 8% interest rate over 15 years with monthly payments. If the annual before-tax cash flow in year 1 is $2,000, what is the overall capitalization rate?
A). 11.21%
B). 11.85%
C). 12.70%
D). 12.31%
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Financial Accounting
Authors: LibbyShort
7th Edition
78111021, 978-0078111020
