Real Estate Math
An investor receives $2,400 per month in rent on a Maryland property worth $360,000. The annual gross yield (return on investment) is:
A6.0%
B6.4%
C7.2%
D8.0%✓ Correct
Explanation
Annual rent = $2,400 × 12 = $28,800. Yield = $28,800 ÷ $360,000 = 0.08 = 8.0%. Using the values given ($2,400, $360,000), apply the appropriate formula.. The correct answer is 8.0%.. This is a common calculation on the Maryland real estate exam.
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