Assume you purchased a rental property for $50,000 and sold it one year later for $55,000 (there was no mortgage on the property). At the time of the sale, you paid $2,000 in commissions and $600 in taxes. If you received $6,000 in rental income (all of it received at the end of the year), what annual rate of return did you earn?
a. 15.3%.
b. 15.9%.
c. 16.8%.
d. 17.1%.