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Lynna [10]
3 years ago
14

Matthew paid $779,000 for a ten-room apartment building nine years ago. the building has lost 2.7% of its value every year. matt

hew keeps all of his rooms rented out continually, charging a monthly rent of $810 per room. upkeep on the building costs matthew $35,900 every year. if matthew sells the building, what will his total profit be, to the nearest hundred dollars
Mathematics
2 answers:
Sloan [31]3 years ago
6 0
The initial cost of the building is $779,000 and has lost 2.7% of its value every year for 9 years. So the remaining amount is:

$779,000 (1 - 0.027)^9 = $608,909.88

and an upkeep of $35,900 per year:

$608,909.88 - (35,900 x 9) = $285,809.88

He had it rented for $810 per room per month:

$285,809.88 + (810 x 10 x 12 x 9) = 1,160,629.88

Therefore, his profit if he will sell the building is:

$ 1,160,629.88 - $ 779,000 = $381,609.88


Mekhanik [1.2K]3 years ago
5 0

Answer:

D. $381,600

Step-by-step explanation:

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