Real Estate Math
A Utah investor calculates that their cash-on-cash return is 8.5% on a $120,000 equity investment. What is their annual cash flow?
A$10,200✓ Correct
B$12,000
C$8,500
D$14,120
Explanation
Cash flow = Cash-on-cash return × Equity investment = 0.085 × $120,000 = $10,200. To solve this, multiply the relevant values: $120,000 at 8.5%.. The correct answer is $10,200.. This is a common calculation on the Utah real estate exam.
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