Hilary buys a home for $100,000 and puts down 20 percent with a 4 percent mortgage. she sells it after 1 year when the house has declined in value by 5 percent. ignoring any real estate commissions or mortgage amortization, what has been the rate of return on her investment for the year?

Question

Jasiah Travis

Business

26 June, 05:18

Hilary buys a home for $100,000 and puts down 20 percent with a 4 percent mortgage. she sells it after 1 year when the house has declined in value by 5 percent. ignoring any real estate commissions or mortgage amortization, what has been the rate of return on her investment for the year?

+5

Answers (2)

Know the Answer?

Adrienne Wood · Answer 1

Hilary buys a home for $100,000 and puts down 20 percent with a 5 percent mortgage. She sells it after 1 year when the house has declined in value by 4 percent. Ignoring any real estate commissions or mortgage amortization, what has been the rate of return on her investment for the year?

-40 (If 4% mortgage, - 36 percent)

Danielle Galvan · Answer 2

-36 percent