A Property Is Sold for $200,000

question 43

Multiple Choice

A property is sold for $200,000.Typical financing terms are an 85% loan with a 10% interest rate over 15 years.If the before-tax cash flow is $2,000,what is the overall capitalization rate?

• A)10.96%
• B)11.96%
• C)19.13%
• D)9.96%

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The way in which the forces of supply and demand determine the price of goods and services in a free market.

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