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Two years ago, a 1 0 , 0 0 0 square foot commercial property was available in Atlanta for $ 1 . 2 million. The
Two years ago, a square foot commercial property was available in Atlanta for $ million.
The property was bought using a ten year loan with an annual rate of The investors hoped to
earn an annual return of over the two years. The monthly rent was $ for the first year and
then increased by the second year. monthly rent the second year was $
What was the annual return on the investment if the property was sold for $ million after two years?
What percent increase in the monthly rent over the second year would give an annual return of
Based on the original rental information, what selling price would give an annual return of
Create a data table with the monthly return as the output variable. The row input is the percent increase
in the monthly rent over the second year start with and go to in increments of The
column input is the selling price, start with $ million and go to $ million in increments of $
Discuss your findings.
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