b$.$

$(1)$ Equity $=$$$40,000$

Rental income $=$$$1,200$ per month

Additional interest $=$$$7,20012$ or $$600$ per month

Net monthly inflow year $2=$$$600$

Beginning of year $1=$$$(40,000)$

Monthly outflows year $1=-$$$2,525$

Monthly outflows year $2=+$$$600$

Solving the cash flow to get an IRR value of $20\%,$ we get the selling price at the end of year $2$ as follows:

$C{F}_0=-$$$40,000$

$C{F}_{1-12}=-$$$2,525$

$C{F}_{13-24}=+$$$600$

$i=20\frac{\%}{12}$

$FV=$$$92,108$

PLEASE SHOW THE EXCEL FORMULA TO GET AN FV OF $$92,108.$