Suppose You Own a House That You Are Renting Out

question 23

Multiple Choice

Suppose you own a house that you are renting out to a group of college students for the 10 month academic year. You are charging $1000 per month in rent. You will collect the first rent payment today and then on the 1ˢᵗ of the month each month thereafter. What is the value of this investment opportunity to you today if you could reinvest your income at an annualized rate of 6%?

• A) $9,677.77
• B) $9,730.41
• C) $9,779.06
• D) $11,677.03

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Definitions:

Career Interest

Personal preferences or inclinations towards specific professions or occupational areas.

Mechanic

A professional who specializes in repairing and maintaining machinery, particularly automobiles.

Questionnaire

A research instrument consisting of a series of questions for the purpose of gathering information from respondents.

Interviewer Illusion

A bias that can occur during interviews where the interviewer overestimates their ability to evaluate the interviewee accurately.