Thinking of her home as leveraged investment

Assignment Help Financial Management

Reference no: EM131555056

Cindy purchased a home for $200,000 and put 20% down. Exactly one year later she was forced to sell the home and netted (after all transaction costs) $198,000. Thinking of her home as a leveraged investment, what rate of return (based on her original investment-only the down payment) did Cindy receive from this home? You may assume that her payments for the year were exactly equal to what she would have been required to pay in rent for an identical home so base your calcuations only on the purchase and sale of the home.

Reference no: EM131555056

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