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In 2 0 1 0 , the city of Houston, Texas, collected $ 2 4 , 1 1 2 , 0 5 4 in fi

In 2010, the city of Houston, Texas, collected
$24,112,054 in fi nes from motorists because of
traffi c violations caught by red-light cameras. The
cost of operating the system was $8,432,372. The
net profi t, that is, profi t after operating costs, is
split equally (that is,50% each) between the city
and the operator of the camera system. What will
be the rate of return over a 3-year period to the
contractor that paid for, installed, and operates the
system, if its initial cost was $9,000,000 and the
profi t for each of the 3 years is the same as it was
in 2010?

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