Assume You Purchased a Rental Property for $100,000 and Sold

question 76

Multiple Choice

Assume you purchased a rental property for $100,000 and sold it one year later for $115,000 (there was no mortgage on the property) .At the time of the sale,you paid $3,000 in commissions and $1,000 in taxes.If you received $10,000 in rental income (all received at the end of the year) ,what annual rate of return did you earn?

• A) 6%
• B) 11%
• C) 20%
• D) 25%

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Definitions:

Howard Gardner

An American cognitive psychologist who introduced the theory of multiple intelligences, emphasizing that individuals have distinct kinds of intelligences such as linguistic, logical-mathematical, and musical.

Major Parts

Essential components or sections that make up a whole structure, system, or object.

Triarchic Theory

A theory of intelligence that posits three aspects of intelligent behavior: analytical, creative, and practical intelligence, as formulated by psychologist Robert J. Sternberg.

Analytical Intelligence

The aspect of intelligence that involves the ability to analyze, evaluate, judge, compare, and contrast.