Correct Answer:Between $230,000 and $250,000

I want to know the whole process of calculation.

A retail shopping center is sold for $1 million and its purchase is financed with a 80 percent loan-to-value ratio for 30 years at 6% interest rate with monthly payments. The property is expected to appreciate at 3% per year. What is the before-tax equity reversion (BTER) at the end of year 3 given selling expenses of 8%