anyone know how to do the following problem?
Assume you purchased a rental property for $50,000 and sold one year later for $55,000 (there was no mortgage on the property). At the time of the sale, you paid $2,000 in commissions and $600 in taxes. If you received $6,000 in rental income (all of it received at the end of the year), what annual rate of return did you earn?
Answer is 16.8%
2007-07-10 14:01:01 · 2 answers · asked by J 1 in Business & Finance ➔ Investing
Your profit is what you got for it 55K plus 6K less what you paid 50K plus 2,600 in expenses. so 61-52.6 =8,400 profit which is 16.8% of 50K
2007-07-10 14:06:22 · answer #1 · answered by shipwreck 7 · 1⤊ 0⤋
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2007-07-11 01:14:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋