A house is being advertised for sale by the owner. An investor estimates that the property could

be rented out for $600 per month (Paid Annually). Taxes and minor expenses are estimated at $1200

per year. The house has been recently remodeled and the tenant should have to pay all utilities. The

investor thinks he could sell the house for $85000 after 5 years. MARR is 12%. Answer the following

1. What is the largest amount that the investor can offer for the property if his MARR is 12%,

compounded annually?

a. $49000

b. $23092

c. $69511

d. $59000