Kemal owned a home worth $510,000 at the beginning of the yearand 565,000 at year's end.That same house could be rented for $48,000 per year.Upkeep cost Kemal $3,500 for the year.What is his return for the year?

Question

Quizplus · Accepted Answer

Kemal's return is calculated by adding the increase in home value ($565,000 - $510,000 = $55,000) and the rental income ($48,000), then subtracting the upkeep cost ($3,500). This gives a total return of $99,500. The return percentage is ($99,500 / $510,000) * 100 = 19.5%.

Kemal Owned a Home Worth $510,000 at the Beginning of the Yearand