A property's operating expenses are twice the annual debt service are no vacancies. PGI is $70,000 per year, and the CFBT is $10,00 mortgage on the property was at 6%, for 20 years, with monthly pa If the investor paid 40% down, borrowing the other 60%, what pric paid for the property (to the nearest $000)? $554,000 $388,000 $582,000 $463,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A property's operating expenses are twice the annual debt service. There
are no vacancies. PGI is $70,000 per year, and the CFBT is $10,000. The
mortgage on the property was at 6%, for 20 years, with monthly payments.
If the investor paid 40% down, borrowing the other 60%, what price was
paid for the property (to the nearest $000)?
$554,000
$388,000
$582,000
$463,000
Transcribed Image Text:A property's operating expenses are twice the annual debt service. There are no vacancies. PGI is $70,000 per year, and the CFBT is $10,000. The mortgage on the property was at 6%, for 20 years, with monthly payments. If the investor paid 40% down, borrowing the other 60%, what price was paid for the property (to the nearest $000)? $554,000 $388,000 $582,000 $463,000
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