Simple Rate Of Return


Definition of "Simple rate of return"

Toni Pierce real estate agent
Toni Pierce, Real Estate Agent Berkshire Hathaway HomeServices PenFed Realty

Also called accounting or unadjusted rate of return. The return computed by dividing the anticipated future annual net income by the required investment in real estate. Sometimes the average investment instead of the initial investment is used as the required investment, which is called average rate of return.

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