Larry and John purchased a warehouse property for ?$332,000 that they are going to lease to several? businesses, including a computer repair business

Finance Nov 27, 2020

Larry and John purchased a warehouse property for ?$332,000 that they are going to lease to several? businesses, including a computer repair business. The property provides a net income of?$2800 at the beginning of every month. What is the monthly compounded annual yield earned by the? property?

Round the final answer to the two decimal places as needed. Round all intermediate values to six decimal places as?needed.)

Expert Solution

ANSWER -

RETURN PER MONTH = $2800 / ($332,000 - $2800)

= 0.8505

Hence anual yield is = (0.8505 x12 ) = 10.20%

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