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In: Accounting

Six years ago, an investor bought a property for $2.5 million with 10% down and a...

Six years ago, an investor bought a property for $2.5 million with 10% down and a 20 year mortgage with an interest rate of 5.6% a year. What were the monthly payments? 5 points

Today the company sold the property and had an annual return of 10% on their investment.

What was the price of the property when it was sold? 5 points

How much equity was in the property when it was sold? 5 points

If the company had put its down payment in a savings account, what amount would they have to earn in dollars to have the same annual return as the real estate investment? 10 points

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Expert Solution

ekkarill92 answered 2 years ago
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