In 2020 you buy a house for $100,000 knowing that if you fix it's roof in 2025, which will cost you $10,000, you will be able to sell the house in 2030 for $120,000. To buy the house you borrow from a bank at the 8% interest rate. (Assume there is no inflation.)

(a) If you don't make any use of the house, do you profit from it's ownership?

(b)Would you profit from it's ownership if you were living in the house and renting a comparable house would cost you $9,000 a year?

(c) If your plan was to rent the house out, what would be the minimal

rent you would have to charge not to lose on it's ownership over the ten years?