Real Estate Math
A real estate investment generates a 9% return. An investor wants to earn $54,000 per year. How much should they invest?
A$486,000
B$540,000
C$600,000✓ Correct
D$648,000
Explanation
Investment = Desired income ÷ Rate of return = $54,000 ÷ 0.09 = $600,000. To solve this, multiply the relevant values: $54,000 at 9%.. The correct answer is $600,000.. This is a common calculation on the Idaho real estate exam.
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