Of all the types of investments Henry could have chosen, he decided to try real estate because, according to Henry, "as everyone knows, real estatenevergoes down". Yea, right. Last year he bought an apartment house in Camden, N.J. (Of all the places ...) Paid $400,000. One year later he decided to sell - for $360,000. OK during the year he did collect rent of $12,000 (assume no other income or expenses). Given this data, what was the rate of return on this dog of an investment?

(Hint: this is NOT a time value problem. If I were you, I think I'd check out that first formula in Chapter 8. Of course you don't have to use that formula, but if you don't - it's what we call in college "wrong").