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umka21 [38]
3 years ago
8

Can someone be helpful

Mathematics
2 answers:
Murrr4er [49]3 years ago
8 0

I would be happy to be helpful!

5 more than the sum of -1 and -12

lets start with the 2nd part, the sum of -1 and -12

sum means adding 2 things together, so -1 + -12 = <u>-13</u>

now lets work on the first part again, it said 5 MORE, more means add as well, so

-13 + 5 = -8

tia_tia [17]3 years ago
8 0

Given

"5 MORE than..." so we need to ADD 5, or "+5 " as the last step, so 3rd and fourth are out.

"the sum of -1 and -12" means we need to see the expression (-1)+(-12), so the second and third are out.

That leaves us with the first, let's check

5 more than the sum of -1 and -12

[-1 + (-12)]+5 => (sum of -1 and -12) add 5 to it......checks.

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This means that the apartment building produces $12,000 per year in gross rents.

Yearly Expenses are as follows;

Maintenance expenses per year = 12×$350 = $4200

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= $2250 (net operating income)

Capitalization rate is given as the ratio of the net operating income to the market value of the building.

Capitalization rate = net operating income/market value of building

Since the building with $83750, that will be its market value

Cap rate = $13750/$83750

Cap rate = 0.16%

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