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An investor plans to purchase a 2-bedroom condo in San Francisco. The price of the property is $300,000. She will have a 15-year 6% APR
An investor plans to purchase a 2-bedroom condo in San Francisco. The price of the property is $300,000. She will have a 15-year 6% APR mortgage with a 20% down payment. The investor will keep the condo in the next 15 years and lease the condo. Suppose the rent collected is identical to the mortgage payment and other expenses (e.g., condo fee, tax, maintenance). The value of the house is expected to inflate by 50%. What is the monthly return to the investor?
Group of answer choices
1.298%
1.13%
13.59%
None
13.508%
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