Personal Finance 1st Edition by Jack R. Kapoor

Exercise 23

Problems 5 and 6 are based on the following scenario: Calculating Profit or Loss on a Rental Property. Felice bought a duplex apartment at a cost of $150,000. Her mortgage payments on the property are $940 per month, $121 of which can be deducted from her income taxes. Her real estate taxes total $1,440 per year, and insurance costs $900 per year. She estimates that she will spend $1,000 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities. (Obj. 1)

What must she charge to make $2,000 in profit each year?