On January 1, Pete Rowe bought a ski chalet for $51,000. Pete is renting the chalet for $55 per night. He estimates he can rent the chalet for 190 nights. Peteâ€™s mortgage for principal and interest is $448 per month. Real estate tax on the chalet is $500 per year.
Pete estimates that his heating bill will run $60 per month. He expects his monthly electrical bill to be $20 per month. He pays $12 per month for cable television.
What is Peteâ€™s return on the initial investment for this year? Assume rentals drop by 30% and monthly bills for heat and electricity drop by 10% each month. What would be Peteâ€™s return on initial investment? Round to the nearest tenth percent as needed.