Real Estate Math
A Florida investor wants a 15% annual cash-on-cash return on a $60,000 cash investment. What annual cash flow is required?
A$9,000✓ Correct
B$12,000
C$6,000
D$8,000
Explanation
Required annual cash flow = $60,000 × 15% = $9,000. To solve this, multiply the relevant values: $60,000 at 15%.. The correct answer is $9,000.. This is a common calculation on the Florida real estate exam.
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