Question

Randolph owns an apartment complex with six units. He charges $480 per month to rent one unit. Upkeep on the building costs Randolph $7,370 per year. If half of the rooms are filled continuously, how much will Randolph earn from his apartment complex over four years?
a.
$39,640
b.
$108,760
c.
$69,120
d.
$38,200

Answer 1

3 units are filled (half of 6) → monthly income = 3 × \$480 = \$1,440.
Yearly income = \$1,440 × 12 = \$17,280.
Yearly profit = \$17,280 − \$7,370 = \$9,910.
Over 4 years = \$9,910 × 4 = \$39,640.

Answer: a. $39,640