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On January 1 , Pete Rowe bought a ski chalet for $ 5 3 , 0 0 0 . Pete is renting the chalet for

On January 1, Pete Rowe bought a ski chalet for $53,000. Pete is renting the chalet for $59 per night. He estimates he can rent the chalet for 200 nights. Pete's mortgage for principal and interest is $452 per month. Real estate tax on the chalet is $540 per year. Pete estimates that his heating bill will run $70 per month. He expects his monthly electrical bill to be $15 per month. He pays $11 per month for cable television.
a. What is Pete's return on the initial investment for this year?
Note: Round your answer to the nearest tenth percent.
Pete's return
b. Assume rentals drop by 30% and monthly bills for heat and electricity drop by 10% each month. What would be Pete's return on initial investment?
Note: Round your answer to the nearest tenth percent.
Pete's return
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