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Computing rate of return of investment using financial

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Calculating the Rate of Return of Investment Using Financial Leverage. Suppose Shaan invested just $10,000 of his own money and had a $90,000 mortgage with an interest rate of 8.5 percent. If after three years he sold the property for $120,000.

a. What is his gross profit?

b. What is his net profit/loss?

c. What is the rate of return on investment?

Reference no: EM13451600

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