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4. You want to buy a home as a rental property. You can buy the home for $300,000 today in cash. You will rent the
4. You want to buy a home as a rental property. You can buy the home for $300,000 today in cash. You will rent the home to a family member who will pay $2000 a month with no rent increase for 8 years. The neighborhood is gentrifying so it should be a good safe investment opportunity with higher than normal price appreciation. In 8 years, you would like to sell the home. Due to favorable conditions, the price of the home is expected to appreciate by 5% annually. What is the annual return rate on the investment? (Ignore selling and buying costs) Please answer with two decimal places with positive values only. Enter the percentage as you would with the % symbol, such as 17.5 for 17.5%
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