Andrew bought a building at a 6% cap rate. the interest rate on his mortgage is only 5.2%. what will andrew experience in the deal?

Positive leverage

Explanation:

In financial terms, leverage refers to using borrowed money to increase the return of an investment. In other words, a business gets a loan and invests that money in a project that hopefully generates a higher return than the borrowing costs.

In this case, the mortgage rate is 5.2% while the cap rate is higher (6%), therefore if is profitable to borrow money and invest it (= 6% - 5.2% = 0.8% positive leverage).

bd = 9 cm

step-by-step explanation:

in a 30°-60°-90° triangle, the ratio of side lengths is 1 : √3 : 2. that is, the longest side (hypotenuse) is twice the length of the shortest side.

all of the triangles in your geometry are 30°-60°-90° triangles. ac is the hypotenuse of δacd, and the short side of δabc.

the short side ad of δacd will be half the length of ac, so 3 cm. the hypotenuse ab of δabc will be twice the length of ac, so 12 cm. segment bd is the difference of the lengths ab and ad, so is

bd = ab -ad

bd = 12 cm - 3 cm = 9 cm

comment on side length ratios

you can figure the ratios of side lengths in a 30°-60°-90° triangle by considering the trig ratios of the angles. or you can figure the length of the altitude of an equilateral triangle of side length 2 using the pythagorean theorem.