An investor pays $340,000 for an eight-unit apartment building. Each unit rents for $1,500 per month. Annual expenses are $96,000. What is the investor's approximate rate of return

Respuesta :

14.12% is the answer

$ 1,500 x 8 units x 12 months = $ 144,000

Total income. $ 144.00-Cost of $ 96,000 = Net income of $ 48,000. $

48,000 / $ 340,000 = 14.12% revenue or 14%.

The ROI is calculated by subtracting the investment start value from the investment end value (equal to net income), dividing this new number (net income) by the investment cost, and finally multiplying by 100.

is the average return, which is a simple mathematical average of the series of returns generated over a period of time. The average return is calculated in the same way that a simple average is calculated for any set of numbers.

A good rate of return on investment is usually considered to be around 7% per year. This is a barometer often used by investors based on the historical average return of the inflation-adjusted S & P 500.

Learn more about rate of return here:https://brainly.com/question/24301559

#SPJ4