P1 = 103,100
P0 = 83,000
.22 = (103,100 - 83,000 + x) / 83,000
.22 = (20,100 + x) / 83,000
(.22 * 83000) = 20,100 + x
18,260 = 20,100 + x
18260 - 20,100 = x
-1840 = x
To check ... Just replace x with the answer. Hope this helps!!!
London purchased a piece of real estate last year for $83,000. The real estate is now worth $103,100. If London needs to have a total return of 0.22 during the year, then what is the dollar amount of income that she needed to have to reach her objective?
the formula is Rt= P1 - P0 +CF1 / P0
help! thanks
