$5.$An office building has a first year NOI of $$100,000$ that increases $2\mathrm{.}5\%$ each year of the

proforma. The monthly debt service of an interest only loan is $$4,375,$ the property is being pur$-$

chased at an $8\mathrm{.}0\%$ cap rate and the loan to value ratio is $70\%.$ What is the IRR on equity for this

property with a three$-$year hold?

$($A$)21\mathrm{.}74\%$

$($B$)20\mathrm{.}28\%$

$($C$)11\mathrm{.}74\%$

$($D$)22\mathrm{.}87\%$