Answer the remaining questions assuming you opted for Loan A. 8. You decide to rent out a room in your new home to your best friend for $500 per month. If you add the extra money to your monthly house payment, how many years will it take you to pay off your mortgage? A) 15.69 years B) 17.72 years C) 30 years D) 158 years Use the following to answer questions 9-12. Five years later, you are offered your dream job in Costa Rica. You need to sell this house in order to purchase a new one where you are moving. Rents have increased since you purchased the home and you estimate that the home will rent for $1700 per month (net). You have found a high quality tenant willing to sign a five year lease under the following conditions. Rent will be $1,700 for the first three years, and increase to $2,000 for the remaining two years. The average investor's holding period on residential rental properties is five years. You have estimated sale proceeds will be $339,427 at the end of the investor's holding period. The appropriate discount rate is 4.25%. 9. What is the minimum price you should list the property for (i.e. the maximum an investor would be willing to pay)? Round up to the nearest whole dollar. *Remember, the value of an investment property comes from its cash flows. That is, you need to consider both the estimated proceeds at the end of the holding period AND the stream of cash flows the investor will receive from rent while they own the property. 10. What will the investor's "going-in" IRR be if they pay exactly list price? Round to two decimal places.