You bought a house for $400,000 using a loan at end of December 2019 and start renting it at the first of January of 2020. You are renting it for $3,000 per month and its operating cost is $200 per month. You will be 5% interest compounded annually on the remaining balance of the loan. You decided to use all annual net income from the property to pay the annual interest and a portion of the remaining loan balance at beginning of following year. You are anticipating to sell the house after 10 years for $500,000. Assume the rent and operating cost will increase by 3% at beginning of each calendar year. 

How much net profit you will collect when selling the house. 

Develop an excel sheet showing your calculations.

Answer rating: 100% (QA)

Step 11 To calculate the net profit after selling the house we need to first calculate the an... View the full answer