Katie Buys a House for $200,000 and Rents It for $1,000

question 222

Multiple Choice

Katie buys a house for $200,000 and rents it for $1,000 per month. Katie's annual rate of return

• A) is 0.5 percent.
• B) is 5 percent.
• C) is 6 percent.
• D) cannot be determined until she sells the house.

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Definitions:

Egalitarian Nature

The quality or state of believing in or promoting equal rights, benefits, and opportunities for all individuals.

Inequality

The state of being unequal, particularly in terms of rights, status, or opportunities among different groups of people.

Veil of Ignorance

A concept in moral and political philosophy that suggests making decisions with a hypothetical lack of information about one's status or position in society to ensure fairness.

Original Position

A hypothetical scenario used in political philosophy, particularly by John Rawls, to establish principles of justice that are chosen by individuals under a veil of ignorance, without knowledge of their place in society.