A slick-talkin’ saleslady sold you a house that she said had “lots of rental property potential.” You tried to negotiate, but she wouldn’t accept a penny less than $50,000 for the property. The annual taxes are $1,500, which are paid in equal monthly installments. For four very long years, you had consistent rental income pegged at $800 per month. At that point in time, what would your Return on Investment (ROI) be? –1.73% –1.65% 1.26% 3.92% 4.25%
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A slick-talkin’ saleslady sold you a house that she said had “lots of rental property potential.” You tried to negotiate, but she wouldn’t accept a penny less than $50,000 for the property. The annual taxes are $1,500, which are paid in equal monthly installments. For four very long years, you had consistent rental income pegged at $800 per month. At that point in time, what would your
–1.73%
–1.65%
1.26%
3.92%
4.25%
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