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You buy a rental property for $500,000 today. The property provides $25,000 in rental income each year for 6 years, starting next year. You plan

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You buy a rental property for $500,000 today. The property provides $25,000 in rental income each year for 6 years, starting next year. You plan to sell the property in year 6 and expect to be able to sell it for $600,000. You expect inflation to be 5% per year over the 6-year time period. If your expectations are correct, what is the average per year real return you earn on the rental property investment? O 7.82% O 3.43% O 2.61% 0 7.74%

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