Mrs. Lim bought a house at $\$550,000$ and spent $\$50,000$ on the redecoration. She then leased

Question

Mrs. Lim bought a house at $\$550,000$ and spent $\$50,000$ on the redecoration. She then leased the house at $\$42,000$ per year for $10$ years. Then Mrs. Lim sold the house at $\$700,000$. Find the total profit of Mrs. Lim as a percentage of her cost (Correct your answer to $3$ significant figures). If Mrs. Lim only lease the house without selling it, find the number of years after which Mrs. Lim will obtain a profit of $5\%$.

Accepted Answer

(i) $86.7\%$ to $3$ significant figures (ii) $15$ years

Percentages involving Finances: Profit and Loss

Percentages involving Finances: Profit and Loss

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