On January 1, Pete Rowe bought a ski chalet for $47,000. Pete is renting the chalet for $47 per night. He estimates he can rent the chalet for 180 nights. Petes mortgage for principal and interest is $440 per month. Real estate tax on the chalet is $420 per year. Pete estimates that his heating bill will run $50 per month. He expects his monthly electrical bill to be $25 per month. He pays $10 per month for cable television.

1)What is Petes return on the initial investment for this year?

Note: Round your answer to the nearest tenth percent.

2)Assume rentals drop by 10% and monthly bills for heat and electricity drop by 20% each month. What would be Petes return on initial investment?

Note: Round your answer to the nearest tenth percent.