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NEW QUESTION: 1
Jennifer bought two apartments in order to rent them to other people with $300,000. The monthly return on the first apartment is 1.5% of its value and on the second apartment the return is 2% of its value. If the total returns of the entire year were $61,200, how much did Jennifer spent on the second apartment?
A. $210,000
B. $180,000
C. $100,000
D. $120,000
E. $150,000
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The easiest way is to back solve the question.
Take answer B, if that is the amount Jennifer invested in the second apartment; the annual return from that apartment was (120,000 x 0.24 = 28,800). Therefore, there are $180,000 left to invest in the first apartment, 18% of $180,000 is $32,400.
Sum them up; the total return is like the question asked- $61,200.
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