You are considering a property purchase for $900,000 with a 75% LTV 10year interest only loan at 5%. The first year's PG

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You are considering a property purchase for $900,000 with a 75%LTV 10year interest only loan at 5%. The first year's PGI is$130,000, and you expect a vacancy of 10%, and all expenses to be35% of EGI. PGI will grow at 3% per year. You will sell theproperty at the end of year 5 at a cap rate of 10%.
What is your before tax return on this investment?
Do not round intermediate results. Enter your answer as apercentage, rounded to two decimal places, but do not enter the "%"sign. For example, if your answer is 0.10456 = 10.456%, enter 10.46(no %).