Last Year, Kristina Purchased a New Condominium in Downtown Toronto

Multiple Choice

Last year, Kristina purchased a new condominium in downtown Toronto for $450,000 and used the property for rental income. During the past year, she rented the condo for $2200 per month. Property taxes were $4500 for the year, and there were no other expenses. The current appraised value of the property is the same as the purchase price. What is Kristina's rate of total return?

A) 5.9%
B) 6.3%
C) 4.75%
D) 4.9%
E) 5.5%