Tom takes out a $60,000 loan at 4 percent annual interest to buy $100,000 worth of property. You earn an annual income of $10,000 after expenses, but before interest and income taxes are deducted. If the income tax rate is 30 percent, then calculate the leveraged return on investment property.

Answer rating: 100% (QA)

To calculate the leveraged return on investment property we need to first calculate the amount of in... View the full answer