This question has two parts. First, answer Part A. Then, answer Part B.
Part A
Fill in the blank question.
MONEY Michael wants to buy an investment property. Rents in the area for properties like the one he wants to buy average $965 per month.
Property Price ($) Monthly Rent for
a Similar Property ($)
College Ave. 202,900 1500
Hempstead Rd. 210,400 1520
Sunbury Rd. 220,900 1550
Wingate Ave. 135,900 1100
Banks use the price-to-rent ratio, priceannual rent, as a metric to determine whether a property is a good investment. Find the price-to-rent ratio for each property. Round to the nearest hundredth.
College Ave. =
Hempstead Rd. =
Sunbury Rd. =
Wingate Ave. =
Part B
If properties with lower price-to-rent ratios are considered to be better investments, which property should Michael consider buying?
Multiple choice question.
cross out
A)
College Ave.
cross out
B)
Hempstead Rd.
cross out
C)
Sunbury Rd.
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D)
Wingate Ave.