Question $10$

Suppose that you are considering the purchase of a parcel of land for $$200,000.$ The property is vacant and produces no income, but there are property

taxes of $$4,000$ per year that must be paid. If you hold the property for $5$ years, and get $$300,000$ from the sale, what would your return be on this

investment?

$6\mathrm{.}74\%$

$8\mathrm{.}47\%$

$10\mathrm{.}16\%$

$11\mathrm{.}80\%$

$13\mathrm{.}40\%$