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You purchased a house for $450,000 and incurred additional costs of $4,000 at the time of the purchase. Because of a job transfer, you were
You purchased a house for $450,000 and incurred additional costs of $4,000 at the time of the purchase. Because of a job transfer, you were forced to sell the house later for $400,000. The selling broker charged a 6% commission, and you estimated that other costs associated with the sale, both direct and indirect, amounted to $10,000. What was your rate of return on this investment? (a) 24.0% (b) 17.9% (c) -19.4% (d) -21.3%
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