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u Answered rrect Answer Question 4 Bill and nine of his friends each contributed $10,000 to form a real investment group. The group then purchased a small retail center for $350,000 using an interest-only loan for $250,000 at 10% annual interest. At the end of one year, the building was sold for $410,000. What is the rate of return on Bill's investment? 60% 17% 0/2 pts 35%

u Answered rrect Answer Question 4 Bill and nine of his friends each contributed $10,000 to form a real investment group. The group then purchased a small retail center for $350,000 using an interest-only loan for $250,000 at 10% annual interest. At the end of one year, the building was sold for $410,000. What is the rate of return on Bill's investment? 60% 17% 0/2 pts 35%

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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I missed this question on my exam.  I would like to know how did they arrive at 35%.  Please show me how.  Thank you!

Correct! You Answered Correct Answer Question 3 Amortization is the practice of charging interest on a loan. process of gradually retiring a debt by periodic payments. compounding of interest. use of debt to enhance the rate of return. Question 4 60% Bill and nine of his friends each contributed $10,000 to form a real investment group. The group then purchased a small retail center for $350,000 using an interest-only loan for $250,000 at 10% annual interest. At the end of one year, the building was sold for $410,000. What is the rate of return on Bill's investment? 17% 35% 2/2 pts 15% 0/2 pts
Transcribed Image Text:Correct! You Answered Correct Answer Question 3 Amortization is the practice of charging interest on a loan. process of gradually retiring a debt by periodic payments. compounding of interest. use of debt to enhance the rate of return. Question 4 60% Bill and nine of his friends each contributed $10,000 to form a real investment group. The group then purchased a small retail center for $350,000 using an interest-only loan for $250,000 at 10% annual interest. At the end of one year, the building was sold for $410,000. What is the rate of return on Bill's investment? 17% 35% 2/2 pts 15% 0/2 pts
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