1950 AHSME Problems/Problem 23

Problem

A man buys a house for $10,000 and rents it. He puts of each month's rent aside for repairs and upkeep; pays $325 a year taxes and realizes on his investment. The monthly rent (in dollars) is:

$\textbf{(A)}\ \64.82\qquad\textbf{(B)}\ \83.33\qquad\textbf{(C)}\ \72.08\qquad\textbf{(D)}\ \45.83\qquad\textbf{(E)}\ \177.08$ (Error compiling LaTeX. Unknown error_msg)

Solution

is the same as , so the man sets one eighth of each month's rent aside, so he only gains of his rent. He also pays $325 each year, and he realizes , or $550, on his investment. Therefore he must have collected a total of $325 +$550 = $875 in rent. This was for the whole year, so he collected dollars each month as rent. This is only of the monthly rent, so the monthly rent in dollars is $\frac{875}{12}\cdot \frac{8}{7}=\boxed{\textbf{(B)}\ \83.33}$ (Error compiling LaTeX. Unknown error_msg)