Billy is considering the purchase of a rental house. The house costs $240,000 and it will generate annual revenues of $15,000 and annual expenses of $3,000. Nevertheless, Billy will need to borrow $240,000 at an interest rate of 7% per year in case he decides to make this investment. Should Billy purchase this house?
A) No, he will lose money.
B) Yes, his profits will be zero.
C) No, his profits will be positive but close to zero.
D) Yes, he will profit from this investment.
A
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The economic growth rate is measured as the
A) amount of real GDP. B) annual percentage change of the population. C) amount of population. D) annual percentage change of real GDP. E) annual percentage change of employment.
The Depository Institutions Deregulation and Monetary Control Act of 1980 accomplished which one of the following reforms?
A. Established a uniform set of reserve requirements for all depository institutions. B. Established maximum and minimum interest rates which depository institutions were permitted to pay on checkable deposits. C. Shifted to the United States Treasury the responsibility for setting the discount rate. D. Provided presidential veto power over setting reserve requirements.