Ask Question
1 June, 11:03

Alma recently purchased a mexican restaurant for $450,000 from which she expects to earn a monthly profit of $1,500. her expected annual rate of return is: 8 percent 4 percent 10 percent 6 percent

+5
Answers (1)
  1. 1 June, 11:16
    0
    Alma expects a monthly profit of $1,500. It means that her annual profit would be:

    $1,500 * 12 = $18,000

    Therefore:

    18,000 : 450,000 = x : 100

    450,000 x = 1,800,000

    x = 1,800,000 : 450,000 = 4%

    Answer:

    Here expected annual rate of return is: B) 4 percent.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Alma recently purchased a mexican restaurant for $450,000 from which she expects to earn a monthly profit of $1,500. her expected annual ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers