Real Estate Math
A Florida investor paid $195,000 for a rental property and earned a total return of $52,650 over 3 years. What was the average annual return percentage?
A9%✓ Correct
B10.75%
C8.25%
D7.5%
Explanation
Average annual return = ($52,650 ÷ 3) ÷ $195,000 = $17,550 ÷ $195,000 ≈ 9.0%. Using the values given ($195,000, $52,650), apply the appropriate formula.. The correct answer is 9%.. This is a common calculation on the Florida real estate exam.
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