uppose Sally and Dave are considering buying an investment apartment, renting it for five years and then selling it. They are planning to buy the property with a mortgage loan with 5-year Fixed Interest rates. They ask your advice to evaluate if this is a profitable investment. Assumptions/Input Data: The condo costs $600,000 and depreciates over 30 years. Investors are planning to buy it with a mortgage loan with a 10% down payment, monthly payment frequency, and 25 years horizon. 5-year Fixed Interest rates are currently 5.25% APR. [assume it is repaid at the beginning of each month]. The current rent for the condo is $2,500 per month [received at the beginning of the month] There are additional miscellaneous expenses: condo fees of $200 per month [paid at the beginning of each month] insurance on mortgage maintenance $50 per month [paid at the beginning of each month] tenant management fee $2000 [paid at the beginning of each year] property taxes of $1,500 annually [paid at the end of each year] All expenses and revenues will grow at the long-term inflation rate (i.e. 2%), except the property tax, which will grow with the property value (i.e., 5%) Currently, Sally and Dave