Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a property was purchased for $200,000, with 80% debt at 6%, net income $16,000 p/a, and the value increases by 3% in the first

If a property was purchased for $200,000, with 80% debt at 6%, net income $16,000 p/a, and the value increases by 3% in the first year, then the equity return after 12 months is:

Select one:

a. 15.0%

b. 31.0%

c. 55%

d. 16.0%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ultimate Beginner S Guide To Real Estate Investment

Authors: Romanj V. Ivanov

1st Edition

979-8865988915

More Books

Students also viewed these Finance questions