You buy a rental property for $250,000, paying $75,000 in cash and borrowing the rest. The net rental income the first year is $14,000 and, after one year, the property is worth $260,000. Total interest paid in the first year is $8,700. What is your annual rate of return on this investment?

Group of answer choices

32%

20.4%

9.6%

6.1%