Question

Your client paid $57,000 for a property that generated monthly cash flows of $340 (end of...

Your client paid $57,000 for a property that generated monthly cash flows of $340 (end of month) for 7 years, plus a lump sum cash flow of $60,000 at the end of the 7 years from the sale of the property. What annual rate of return did the client earn from the property? (Answer as an APR, monthly compounding.)

Select one:

8.12%

6.44%

7.46%

8.37%

7.73%

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Answer #1

Hence, correct option is 7.73% (0.644%*12)]

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