Calculate monthly mortgage payment and capitalization rate

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Problem 1: You buy an apartment building for $2,000,000. You make a down payment of $500,000 and finance the remaining $1,500,000 with a 15-year Mortgage at 5%. Annual rental income is $450,000 and annual operating expenses are $200,000. Calculate:

A. Monthly mortgage payment
B. Net Operating Income (NOI)
C. The Capitalization Rate (Cap Rate)

Reference no: EM132948879

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