Results 1 to 2 of 2

Math Help - Annual Return

  1. #1
    Member
    Joined
    Jun 2009
    Posts
    82

    Annual Return

    A man pays 30 times the annual rent to purchase a building. The rate % per annum he derives from his investment is:
    A. 2%
    B. 3%
    C. 4%
    D. 5/3 %
    E. 10/3%
    Follow Math Help Forum on Facebook and Google+

  2. #2
    A riddle wrapped in an enigma
    masters's Avatar
    Joined
    Jan 2008
    From
    Big Stone Gap, Virginia
    Posts
    2,551
    Thanks
    12
    Awards
    1
    Quote Originally Posted by fcabanski View Post
    A man pays 30 times the annual rent to purchase a building. The rate % per annum he derives from his investment is:
    A. 2%
    B. 3%
    C. 4%
    D. 5/3 %
    E. 10/3%
    Hi fcabanski,

    As I understand annual rate of return is the rate returned on investment after a period of 1 year.

    x = rent amount

    Original investment = 30x

    After 1st year = 31x (30x + 1 year's rent)

    Increase = 1x

    Annual rate of return = \frac{1}{30}=.0\overline{3} = \frac{10}{3}%.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Annual Payment
    Posted in the Business Math Forum
    Replies: 4
    Last Post: October 31st 2009, 06:06 AM
  2. Annual Sales
    Posted in the Algebra Forum
    Replies: 1
    Last Post: May 28th 2009, 08:14 AM
  3. Average Annual Return
    Posted in the Pre-Calculus Forum
    Replies: 2
    Last Post: November 4th 2008, 08:49 PM
  4. annual contribution
    Posted in the Algebra Forum
    Replies: 2
    Last Post: October 7th 2008, 03:10 PM
  5. annual rate of return
    Posted in the Business Math Forum
    Replies: 2
    Last Post: September 16th 2005, 11:06 AM

Search Tags


/mathhelpforum @mathhelpforum