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An Investor Just Purchased an Office Building for $100,000

Question 11

Multiple Choice

An investor just purchased an office building for $100,000.He knows for certain that he can sell the building for $110,000 in 5 years.Approximately how much does he need to charge in annual rent in order to achieve a 15% annual return on the deal?


A) $2,500
B) $8,000
C) $13,500
D) $20,500

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