Answer: $1,842
Step-by-step explanation:
John wants to earn 25% of his investment of $50,000 which is:
= 25% * 50,000
= $12,500
He has expenses of $9,600 yearly so the rent he should charge per year in order to make his 25% requirement as income is:
= Expenses + Return
= 9,600 + 12,500
= $22,100
Rent per month is:
= 22,100 / 12
= $1,842
