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(6.) An investor is considering the purchase of a rental property. The excess of receipts over disbursements is estimated at $16,000 a year for 9
(6.) An investor is considering the purchase of a rental property. The excess of receipts over disbursements is estimated at $16,000 a year for 9 years. It is estimated that the property can be sold for $90,000 at the end of the 9 years. What is the effective annual rate of return (interest rate) if the purchase price is $50,000? $100,000? $200,000
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