1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
8_murik_8 [283]
3 years ago
5

An apartment building produces $4,000 per quarter in gross rents. The maintenance expenses run $350 per month. Property taxes ar

e $1,750 per year. The mortgage payments are $650 per month. If the building is worth $83,750 what is the cap rate?
Mathematics
1 answer:
S_A_V [24]3 years ago
5 0

Answer:

0.16%

Step-by-step explanation:

Cost of rent per quarter = $4000

Cost of rent per year = 4×$4000

= $16,000

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

Property taxes per year = $1,750

Mortgage payment per year = 12×$650 = $7800

Total expenses per year = sum of all the yearly expenses

= $4200+$1,750+$7800

= $13750

Yearly revenue generated = Cost of rent per year - total yearly expenses

= $16,000-$13750

= $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%

You might be interested in
Find slope of -2,3 and 4,-5
bulgar [2K]
-2,3 is (x1,y1) and (4,-5) is (x2,y2) so you do y2-y1/x2-x1

y2-y1 is -5-3 which is -8 and x2-x1 is 4-(-2) which is 6 so you get

-8/6= -4/3
4 0
2 years ago
A rectangular lot is 70 yards wide and 115 yards long.
forsale [732]

Answer: 165 in length 20 in width

Step-by-step explanation: :)

5 0
2 years ago
Cecile drew a sided figure. It had 2 sides that were 3,4 centimeters long and 2 sides that were 3.3 cenumeters long had at least
Leona [35]
Ummm errrrmmm yeah......
3 0
2 years ago
Find the constant of proportionality and unit rate for the data in the table. Then write the equation to represent the relations
Hatshy [7]

You should set up an X and Y table. Make time X and Distance Y. (the table is like a cross: on the left top put x and left top put y. Then under the line list the x and y numbers given in order.) Then find the "slope" which is y/x  (rise over run) then you get the increase rate of 45 mph. The relation between them would be D=45t 
3 0
3 years ago
Which number is 300% of the difference between 23 and 27?
Nata [24]
Your answer is 12

The difference 27 – 23 = 4, and 300% of 4 is 3 times 4, or 12.
7 0
3 years ago
Other questions:
  • A turtle swims at a speed of 1584 meters per hour. A girl swims at a speed of 1380 millimeters per second how much faster does t
    7·2 answers
  • Find the area of the figure.(Sides meet at right angles)
    13·1 answer
  • The people who "consume" or use the travel product are called _____.
    13·2 answers
  • A theater can seat 273 people. The number of rows is 8 less than the number of seats in each row. How many rows of seats are the
    5·1 answer
  • HELP ME!!!! give 5 stars
    5·1 answer
  • Imagine that the mean height for players in all Division I women's basketball programs is 69 inches with a standard deviation of
    9·1 answer
  • Three students were given the expression shown to simplify.
    7·2 answers
  • You go to dinner and decide to leave a 15% tip for your server you had 45 when you came to the restaurant. How much money would
    5·2 answers
  • What is the area in square units of the rectangle 3/4 and 2/5?
    5·1 answer
  • The United States earned 104 medals at the 2012 summer olympics. The number of silver medals earned was the same as the number o
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!