Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 34 3.5 pts A buyer has agreed to purchase Mr. Black's property for $128,000., The buyer will utilize debt financing under the following terms:
Question 34 3.5 pts A buyer has agreed to purchase Mr. Black's property for $128,000., The buyer will utilize debt financing under the following terms: 75 percent loan-to-value ratio 8 percent annual interest 20-year amortization period with monthly payments 20 year loan term What is the outstanding balance on the loan at the end of year five? $39,602 O $80,207 $56,108 O $40,702 $84,025 Question 35 2 pts To determine what a potential buyer would pay for a property using a gross rent multiplier, the buyer would: Multiply the gross operating income by the capitalization rate None of the above Divide the net operating income by the potential rental income Multiply the potential rental income by the buyer's gross rent multiplier requirement Multiply the effective rental income by the buyer's gross rent multiplier requirement Question 36 2 pts As the capitalization rate on a property increases: The value or price increases The net operating income decreases The value or price decreases The debt service increases The debt service decreases
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started