3. CHALLENGE PROBLEM Jim Smith invests $2,500,000 in a prime seaside 3-unit strip mall. He has a $500,000 down payment. Kate's Kites and Sandy's Seashells each occupy a 1,200 square foot unit. Seaside Realty occupies the 2,000 square foot unit. The units rent for $8.33 per square foot per month. The annual mortgage interest is $175,000, depreciation is 3.5% of the purchase price, and taxes, insurance, repairs, and upkeep total $125,000. Determine the annual (a) net income and (b) yield.