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4 . Desiree requires a 1 2 % before - tax return on her real estate investments. If she invests $ 7 8 , 0

4. Desiree requires a 12% before-tax return on her real estate investments. If she invests $78,000 cash to buy a rental townhouse that has $120 per month in taxes, insurance, and maintenance, and if she can sell the property in 5 years for $88,000, how much monthly rent must she charge to reach her target rate of return?

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