A mortgage broker is willing to arrange a loan for him for 90% of the $100,000 purchase price and renovation costs at 5% interest with no payments due until the end of one years. Lou would get $90,000 from the lender, use $10,000 of his own money, then pay back the loan plus interest of $4,500. What is Lous rate of return if he takes this deal?

Answer rating: 100% (QA)

The 90000 that Lou get is equivalent to 100000 ther... View the full answer