An Investor Buys a Property for $640,000 with a 25-Year

question 47

Multiple Choice

An investor buys a property for $640,000 with a 25-year mortgage and monthly payments at 8% APR.After 18 months the investor resells the property for $712,000.How much cash will the investor have made from the sale,once the mortgage is paid off?

• A)$63,218
• B)$72,412
• C)$84,825
• D)$92,644

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Definitions:

Accounts Payable

Short-term financial obligations to suppliers or creditors for goods and services received but not yet paid for.

Equipment

Tangible assets used in the operation of a business, not intended for sale.

Selling Price

The price at which a product or service is sold to customers, determining the revenue generated from sales activities.

Note Payable

A written promise to pay a specified sum of money, usually with interest, by a certain date.