Income from an Apartment Building You Own Totals $220,000 Per

question 142

Multiple Choice

Income from an apartment building you own totals $220,000 per year. You plan on selling the building and retiring to France in 13 years. Assuming you can invest the income from the building each year at 2%, how much money will you have on which to retire? Future Value of $1
Future Value of Annuity of $1

• A)$2,860,000
• B)$440,000
• C)$3,229,600
• D)$2,496,560

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Definitions:

Diminishing Value

A reduction in the worth of an asset over time, often due to wear and tear or obsolescence.

After-tax Cash Inflow

The net amount of cash generated from an investment after deducting all applicable taxes.

Income Tax Rate

The percentage of an individual's or corporation's income that is paid to the government as tax.

Net Profit

The financial gain remaining after subtracting all operating expenses, interest, taxes, and any other charges from total revenue.