12
12
Francis Bacon and his wife purchased a condominium on the beach for $235,000.
They made a $40,000 down payment. Their annual expenses were mortgage
interest of $11,700, depreciation of 3% of the purchase price of the house, and
taxes, repairs, and insurance of $15,430. They rented the condo for $3,000 per
month. What is the annual yield?
(A) 1.52%
(C) 3.62%
(B) 2.55%
(D) 4.55%