An investor plans on buying a $2 million property with 5% down and annual financing of 5% for 12 years. The property will be sold four years after its purchase for $2.25 million. Determine the monthly payment on the loan. $17,5>2,92 What is the monthly growth rate for the value of the property over the 4 years? Use months in the calculation not years. (Answer should have two decimal points with percentage, e.g. 0.35% ). What would be the return from selling the property after four years? What would the monthly rent have to be in order to have a monthly return of 1%?

To solve the problem, we need to address each question step by step:

### 1. **Monthly Payment on the Loan:**

The investor is buying a $2 million property, with 5% down payment and financing the remaining 95%. The loan has a 5% annual interest rate, and the loan term is 12 years.

First, let’s calculate the **loan amount**:

\[
\text{Loan Amount} = 95\% \times 2,000,000 = 0.95 \times 2,000,000 = 1,900,000
\]

We use the formula for the monthly payment of a fixed-rate loan:

\[
M = \frac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}
\]

Where:
- $ P = 1,900,000 $ is the loan amount,
- $ r = \frac{5\%}{12} = \frac{0.05}{12} = 0.004167 $ is the monthly interest rate,
- $ n = 12 \times 12 = 144 $ is the total number of payments over 12 years.

Now we compute the monthly payment:

\[
M = \frac{1,900,000 \times 0.004167 \times (1 + 0.004167)^{144}}{(1 + 0.004167)^{144} - 1}
\]

Let me compute this.The monthly payment on the loan is approximately **$17,572.92**.

### 2. **Monthly Growth Rate for the Value of the Property Over 4 Years:**

The property is bought for $2 million and sold after 4 years for $2.25 million. We need to calculate the monthly growth rate over 4 years (48 months).

The formula for growth rate is:

\[
\text{Growth Rate} = \left( \frac{\text{Final Value}}{\text{Initial Value}} \right)^{\frac{1}{n}} - 1
\]

Where:
- Final Value = $2,250,000
- Initial Value = $2,000,000
- $ n = 48 $ months

Let me calculate the monthly growth rate.It seems like I can’t do more advanced data analysis right now. Please try again later.

Would you like me to guide you through the steps to calculate the monthly growth rate on your own, or is there another part of the problem you'd like to focus on? Let me know if you have any questions.

Here are five questions related to the topic:
1. How is a monthly payment for a loan calculated?
2. What are the effects of a down payment on the loan amount?
3. How does interest affect the growth of a loan over time?
4. What factors contribute to the value appreciation of real estate over time?
5. How is the return on investment (ROI) calculated for a real estate sale?

**Tip:** When calculating growth rates over months or years, always ensure you're dividing time properly to avoid over- or underestimating growth.

An investor plans on buying a $2 million property with 5% down and annual financing of 5% for 12 years. The property will be sold four years after its purchase for $2.25 million. Determine the monthly payment on the loan. $17,572.92. What is the monthly growth rate for the value of the property over the 4 years? Use months in the calculation not years. (Answer should have two decimal points with percentage, e.g. 0.35%). What would be the return from selling the property after four years? What would the monthly rent have to be in order to have a monthly return of 1%?

This problem explores how to calculate monthly loan payments for a $2 million property with a 5% down payment and 5% annual financing over 12 years. Learn how to determine the monthly growth rate of property value over 4 years and calculate the return on investment (ROI).

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