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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Definitions:

European Vacation

A holiday spent in one or more countries in Europe, often characterized by visits to cultural sites, natural landscapes, and experiencing local cuisine.

Clearly Stated

Something presented or expressed in a manner that leaves no doubt about its meaning.

Silence

The absence of sound or the act of refraining from speaking; in legal contexts, it can imply consent or acceptance under certain conditions.

Acceptance

In contract law, acceptance refers to the expression of agreement to the terms of an offer, resulting in a contract.