Question 36 • 26-27 Ignite Technical Math-Financial Math - MA2007
William earns $12 × $525 × 12 = $75,600 in rent each year. After $36,500 in upkeep, that leaves $39,100 per year, or $195,500 over five years. The building’s value becomes $340,000 × 1.018⁵ ≈ $371,721, an increase of about $31,721. Adding the rental income after upkeep to the increase in value gives about $227,200, choice B.
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