If the equity requirement is 12 percent and a mortgage can be obtained for 25 years at 7 percent. If the loan to value ratio is 70 percent (equity is 30 percent), what is the value of a property that generates $125,000 in net operating income.

Suppose you borrow $250,000 at 5 percent for 15 years with monthly payments, how much do you owe at the end of five years.