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A condo is purchased for $300,000. It has monthly taxes of $125, monthly fees of $550, and other monthly expenses of $50. A comparable apartment
A condo is purchased for $300,000. It has monthly taxes of $125, monthly fees of $550, and other monthly expenses of $50. A comparable apartment costs $2,500/month to rent. Five years later, the condo is sold for $350,000, but the real estate agent keeps 5% of the selling price. Calculate the total rate of return received by the owner, rounding to the nearest 0.1%. (Hint: For the buying and selling part of your calculation, only count what they received from the sale.)
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