Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, pete rowe bought a ski chalet for $4

On January 1, Pete Rowe bought a ski chalet for $49,500. Pete is renting the...

90.2K

Verified Solution

Question

Accounting

On January 1, Pete Rowe bought a ski chalet for $49,500. Pete is renting the chalet for $52 per night. He estimates he can rent the chalet for 190 nights. Petes mortgage for principal and interest is $445 per month. Real estate tax on the chalet is $470 per year. Pete estimates that his heating bill will run $60 per month. He expects his monthly electrical bill to be $20 per month. He pays $12 per month for cable television. a. What is Petes return on the initial investment for this year? (Round your answer to the nearest tenth percent.)

b. Assume rentals drop by 15% and monthly bills for heat and electricity drop by 15% each month. What would be Petes return on initial investment? (Round your answer to the nearest tenth percent.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

These are all part of one question so it can be answered in paragraph format: 1. How...

Finance
1.2K views

Using the excerpt from the Animal World Company statement of cash flows, analyze thoroughly the cash...

Advance Math
1.2K views

Explain why we can have "even" and "odd" half range expansions.

Physics
1.2K views

A heavy rope is suspended from a rigid suppor wave pulse is set up at...

Basic Math
1.2K views

An investment company pays 8% compounded semiannually. You want to have $17,000 in the future.(A)...

Statistics
1.2K views

Using the standard normal distribution find the two z scores that that form the middle...

Calculus
1.2K views

Write the solution from the final simplex table X2 1 2 Z 13 0 0...

Algebra
1.2K views

x y 25 x y 1 Solve the following system O 2 3 1 4...

Accounting
1.2K views

An asset has a first cost of $45,000, a recovery period of 5 years, and...

Accounting
1.2K views

What is the time value of money (TVM)? Why is this concept important in accounting?...

Accounting
1.2K views

Accounting contributes to management's decision-making process through internal reports that review the actual impact of...

Finance
1.2K views

Provide brief answers for the following questions: a. What is indirect lending? b. Explain how...