Assume that you can purchase a 3-bedroom rental townhome for $275,000 in Cache Valley, Utah. The down payment required is 10%. You finance the remaining balance with a 2.75% 30-year fixed term loan. You estimate that your annual property taxes will be $1,700 and annual homeowners insurance expense to be $700. You plan on charging $1,350 per month in rent for 15 years and then selling the property for an estimated $375,000. The appropriate inflation-adjusted discount rate is 2.5% per annum.

If you were to amortize the mortgage to a zero balance, how much in interest you would you pay over the 30-year period?

What is the remaining balance of the loan at the end of the 180th month?

What is the NPV of this rental investment?

What is the annualized IRR of this rental investment?