Question
An investor wants to earn 1.5% a month on a property over the next five years. The property is worth $2 million today. It is
An investor wants to earn 1.5% a month on a property over the next five years. The property is worth $2 million today. It is bought with 10% down and a ten year loan with an annual rate of 5%. What is the monthly payment? What monthly growth rate in the value of the property will get the 1.5% monthly return? Instead of the value of the property growing to get the 1.5% a month return, the investor rents it out each month, what monthly rent will get the 1.5% return? (growth rate is zero) Create a data table with the monthly return (1.5%) as the output variable. The row input is the monthly growth rate, 0 and go to 0.3% in increments of 0.1%. The column input is the monthly rent, start with $6,000 and go to $11,000 in increments of $1,000. Discuss your findings.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started