London purchased a piece of real estate last year for 85400

London purchased a piece of real estate last year for $85,400. The real estate is now worth $100,500. If London needs to have a total return of 0.23 during the year, then what is the dollar amount of income that she needed to have to reach her objective?

Solution

Required amount = 85400 * ( 1 + 0.23) ^1 = 105042

Worth of estate = 100500

AMount of incme needed = 100500 - 105042 = $ 4542$