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Problem:

You borrow $75,000 for 30 years at 11% interest compounded annually. The value of the property is $100,000, PGI= $20,000, vacancy rates are 8%, and operating expenses are $8,100.

Required:

Question 1: Calculate the mortgage constant.

Question 2: Calculate the annual debt service.

Question 3: Calculate the EGI, NOI, and BTCF

Question 4: Calculate the overall capitalization rate, using band-of-investment approach.

Note: Please provide equation and explain comprehensively and give step by step solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91148187

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