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Mary buys a house for $140,000.00. She could rent the house out to someone else and...

Mary buys a house for $140,000.00. She could rent the house out to someone else and earn $14,000.00 per year, but she chooses to live there herself. After one year, the value of the house has risen to $158,200.00. If Mary sells the house, what would be the rate of return to owning this house? Give your answer to two decimals.

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Answer #1

Rate of return=(158,200-140,000/140,000)*100

Rate of return=13%

Rate of return=(current value-orignal value/orignal value)*100

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