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Question

A man buys a house for 10,000 and rents it. He puts 1212% of each month's rent aside for repairs and upkeep; pays 325 a year taxes and realizes 512% on his investment. The monthly rent (in dollars) is:

Accepted Answer

1212% is the same as 18, so the man sets one eighth of each month's rent aside, so he only gains 78 of his rent. He also pays 325 each year, and he realizes 5.5%, or 550, on his investment. Therefore he must have collected a total of 325 +550 = 875 in rent. This was for the whole year, so he collected 87512 dollars each month as rent. This is only 78 of the monthly rent, so the monthly rent in dollars is 87512 87=83.33$.