Question

If you own a building free and clear that is worth $115,000 and want an annual return of 12%, what net income is needed each month?

A. $13,800
B. $1,120
C. $1,150
D. $12,260

Answer 1

The net income needed each month to achieve an annual return of 12% on a building worth $115,000 is $13,800. Therefore, the correct option is A.

Step-by-step explanation:

To determine the net income needed each month for an annual return of 12% on a building worth $115,000, we can use the formula:

Net Income = Property Value x Annual Return

Net Income = $115,000 x 0.12 = $13,800

Therefore, the net income needed each month is $13,800.