Question

Kemal owned a home worth $510,000 at the beginning of the year and 565,000 at year's end. That same house could be rented for $48,000 per year. Upkeep cost Kemal $3,500 for the year. What is his return for the year?

19.5%

10.8%

7.9%

8.5%

27.3%

Answer 1

Ans 19.5%

Return on Home = (End Price - Start Price) + Rent Income - Upkeep cost

                         = (565000 - 510000) + 48000 - 3500

                         = 99500

Return in % = Return on home / Start Price * 100

                  = 99500 / 510000 * 100

                  = 19.5%