In-line tenants are small retailers and tend to pay larger proportion for the common area maintenance charges. According to Leamer (2008), house transaction volumes fluctuate more than house prices. The value of a property is 10. The loan balance is 5 with the interest rate of 10%. For simplicity it is the interest-only loan. Without using mortgages, the equity investment return rate is 20%. Then, the investment return rate with using mortgages is X%. Calculate the value of X. (Hint: Use the formula that we learned in our lecture.) Consider an income producing property. The value of the property at time 0 is 10. The property's initial net operating income (NOI) is 1. The NOI is expected to increase as follows: 1 at time 1, 2 at time 2, 3 at time 3, and so on. The investor plans to sell the property at the end of time 3. Suppose the terminal capitalization rate and the going-in capitalization rate are the same. Calculate the resale value at the end of time 3. An investor would like know the value of a property. It is expected that the net operating income (NOI) will be 10. Comparable properties" capitalization rate is 0.5 (or 50%). Calculate the value of the property.