Suppose You Pay $100,000 for a Property Today

question 26

Multiple Choice

Suppose you pay $100,000 for a property today. The property appreciates 8% in the first year, and 12% in the second year. The third year yield was 7%. What was the income generated by the property in year 3?

• A) $7,000
• B) $8,000
• C) $8,467
• D) $29,427
• E) Cannot be computed from the information given.

---

Definitions:

Product Extension

A strategy where a company introduces additional items in the same product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.

Global Markets

The worldwide marketplace where goods, services, and financial instruments are traded across national borders.

Selling Virtually

Refers to the process of selling products or services through online platforms, without the need for physical interaction between buyer and seller.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or any other business activity.