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A retail shopping center is purchased for $2.1 million. During the next five yearsthe property appreciates...

A retail shopping center is purchased for $2.1 million. During the next five yearsthe property appreciates at 2 percent per year. At the time of purchase, the property is financed with a 70 percent loan-to-value ratio for 25 years at 6 percent (annual) with monthly amortization. At the end of year 5, the property is sold with 4 percent selling expenses. What is the before-tax equity reversion?
A. 804,192
B. 826,937
C.860,182
D.870,581
E.903,825

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jeff jeffy answered 5 months ago
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