Suppose You Own a House That You Are Renting Out

question 5

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 1^st of the month each month thereafter.What is the value of this investment opportunity to you today if you could reinvest your income at a rate of 6%?

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

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Definitions:

Boys And Girls

Boys and girls generally denote the classification of individuals based on sex or gender, typically used in the context of children or adolescents.

Random Variable

A variable whose values depend on outcomes of a statistical experiment where the exact outcomes are uncertain.

Rainy Days

Days on which a significant amount of precipitation falls, typically defined as days when there is at least 0.1 inches of rainfall.

Expected Amount

The average value or mean that one anticipates to occur over a long series of trials in a random experiment.