A Property Is Financed with an 85% Loan-To-Value Ratio at 10

question 25

Multiple Choice

A property is financed with an 85% loan-to-value ratio at 10% interest over 25 years. What would the BTIRRE on equity be estimated at given that the BTIRRP is 10.75%?

• A) 10.1%
• B) 10.4%
• C) 15.0%
• D) 13.2%

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Definitions:

Controls

Mechanisms or regulations put in place to guide the operation or behavior of a system, process, or organization.

Initiation Phase

The first phase in a project where its feasibility, scope, and objectives are determined, leading to its formal launch.

Data

Information collected for reference or analysis, presented as numbers, facts, or text, which can be used for calculating, reasoning, or planning.

Design

The process of creating a plan or convention for the construction of an object, system, or measurable human interaction.