Not so tricky.
70,600 * 0.14 = ?
An insurances fund invests $70,600 in real estate and earns 14% per year on the investment. How much money is earned per year? .tricky
3 answers
Actually it could be tricky if studying compound interest.
.14 times whatever the house is worth now
value = 70,600 (1.14)^n
amount earned in year n = 70,600[ (1.14)^n - (1.14)^(n-1)]
.14 times whatever the house is worth now
value = 70,600 (1.14)^n
amount earned in year n = 70,600[ (1.14)^n - (1.14)^(n-1)]
so is it 9884?