2
QuizMultiple Choice

Real Estate Investments

Question 2 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Marcy charges $575 per month to rent a room at her eight-room apartment complex. Running the complex costs Marcy $9,880 per year in upkeep. Assuming that all of the rooms are rented out, how much does Marcy make from her apartment complex every year?

Answer
A
$55,200
B
$45,320
C
$65,080
D
$16,780

Explanation

Marcy collects $575 × 8 = $4,600 per month when all eight rooms are rented. Over 12 months, that is $4,600 × 12 = $55,200 in rent. Subtract the $9,880 annual upkeep cost: $55,200 − $9,880 = $45,320, so she makes $45,320 per year.

AI-written and checked against the verified answer.

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