Question: A renovator bought a property for $200,000 using a 12 month interest only loan with an annual rate of 4% with monthly compounding. Renovations cost

A renovator bought a property for $200,000 using a 12 month interest only loan with an annual rate of 4% with monthly compounding. Renovations cost an additional $10,000 a month for the first 6 months, and then the property was sold for $270,000 at the end of the seventh month.

What was the monthly payment on the loan?

How much is owed on the loan at the end of the 7th month?

What was the annual return from selling the property?

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