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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 Pete Rowe bought a ski chalet for $ Pete is renting the chalet for $ per night. He estimates he can rent the chalet for nights. Pete's mortgage for principal and interest is $ per month. Real estate tax on the chalet is $ per year. Pete estimates that his heating bill will run $ per month. He expects his monthly electrical bill to be $ per month. He pays $ 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 and monthly bills for heat and electricity drop by 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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