1.Dave bought a rental property for $515,000 cash. One year later, he sold it for $540,000. Suppose Dave invested only $110,000 of his own money and borrowed $405,000 interest-free from his rich father. What was his percentage return on investment? (Negative amount should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places.)

Return on investment

2.Shaan bought a rental property for $109,900 with $17,900 of his own money and had a $92,000 mortgage with an interest rate of 9.3 percent. After three years, he sold the property for $138,000. Assume interest-only payments were made on the mortgage during the three years. Ignore taxes.

(a)

What is his gross profit?

Gross profit

$

(b)

What is his net profit or loss? (Input the amount as a positive value.)

$

(c)

What is the percent rate of return on investment? (Negative amount should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places.)

Percent rate of return on investment

3.Felice bought a duplex apartment at a cost of $155,000. Her mortgage payments on the property are $1,370 per month. Her real estate taxes total $1,728 per year, and insurance costs $1,368 per year. She estimates that she will spend $1,500 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities. Ignore income taxes, changes in equity value, and changes in property value.

What monthly rent must she charge for each apartment to make $2,500 in profit each year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Rent per apartment

$

4.Audra owns a rental house. She makes mortgage payments of $1,060 per month, which include insurance, and pays $2,700 per year in property taxes and maintenance. Utilities are paid by the renter. Ignore income taxes, change in property value, and change in equity.

What should Audra charge for monthly rent to make $4,500 profit each year? (Round your intermediate calculations and final answer to 2 decimal places.)

Monthly rent charged for desired profit

$