What is the owner approximate overall capitalization rate

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Problem 1: A property produces an income of $10,000 per year. Management expenses are $700 annually. Monthly heating costs are $92. If the property is valued at $80,000, what is the owner's approximate overall capitalization rate?

A. 7 percent

B. 8 percent

C. 10 percent

D. 14 percent

Reference no: EM132756391

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