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%

---

Definitions:

Convergent Evolution

The process whereby organisms not closely related independently evolve similar traits as a result of having to adapt to similar environments or ecological niches.

Coevolved Traits

Traits in different species that have evolved mutually through the process of biological interaction, such as predator/prey or parasitic relationships.

Biomes

Large community of plants and animals that occupies a distinct region defined by its climate, flora, and fauna.

Coral Reefs

Diverse underwater ecosystems held together by calcium carbonate structures secreted by corals, serving as habitats for a vast array of marine life.