John bought an old house in 2021, he spent 3 months to renovate and rented for 9 months before he sold it. Given the numbers below, calculate John's return on investment as a percent (ignore the interest rates and other fees related to the transactions). Purchase Cost Renovation money spent not including ROI= taxes Monthly Rental Sale Price Answer: $95,000 $25,000 $1,400 $165,000 000+$25,000 money earned 120,000 ста

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Please solve correctly using the formula for ROI
2
John bought an old house in 2021, he spent 3 months to renovate and rented for 9 months before he sold it.
Given the numbers below, calculate John's return on investment as a percent (ignore the interest rates and
other fees related to the transactions).
Purchase Cost
Renovation
Monthly Rental
Sale Price
ROI=
money spent not including
taxes
Answer:
ROI =
$95,000
$25,000
$1,400
$165,000
$95,000 +$25,000
9(1,400) + 165,000
money earned
120,000 = 0.676
177,600
67.690
Transcribed Image Text:2 John bought an old house in 2021, he spent 3 months to renovate and rented for 9 months before he sold it. Given the numbers below, calculate John's return on investment as a percent (ignore the interest rates and other fees related to the transactions). Purchase Cost Renovation Monthly Rental Sale Price ROI= money spent not including taxes Answer: ROI = $95,000 $25,000 $1,400 $165,000 $95,000 +$25,000 9(1,400) + 165,000 money earned 120,000 = 0.676 177,600 67.690
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