A property is sold for $240,000. Typical financing terms are an 85% loan with an 8% interest

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A property is sold for $240,000. Typical financing terms are an 85% loan with an 8% interest rate over 15 years with monthly payments. If the annual before-tax cash flow in year 1 is $2,000, what is the overall capitalization rate?
A). 11.21%

B). 11.85%

C). 12.70%

D). 12.31%

Related Book For answer-question

Financial Accounting

ISBN: 978-0078111020

7th Edition

Authors: Libby, Libby, Short

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Posted Date: Oct 15, 2020 02:00 AM

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A property is sold for $240,000. Typical financing terms are an 85% loan with an 8% interest

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Financial Accounting

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