Sure! Let's break down the problem step by step to find out how many years it will take Zac to recoup all his investment.
### Step 1: Calculate the Total Cost
First, we need to find out how much Zac spends in total on buying the house and converting it into two flats.
- Cost to buy the house: £210,000
- Cost to convert the house: £140,000
Adding these together:
[tex]\[ \text{Total cost} = £210,000 + £140,000 = £350,000 \][/tex]
### Step 2: Calculate the Total Monthly Rent
Next, we need to calculate the total amount of rent Zac will receive per month from both flats.
- Rent from flat 1 per month: £825
- Rent from flat 2 per month: £950
Adding these together:
[tex]\[ \text{Total monthly rent} = £825 + £950 = £1,775 \][/tex]
### Step 3: Calculate the Total Yearly Rent
To find out how much rent Zac will receive in a year, we multiply the total monthly rent by 12 (the number of months in a year).
[tex]\[ \text{Total yearly rent} = £1,775 \times 12 = £21,300 \][/tex]
### Step 4: Calculate the Number of Years Needed
Finally, to find out the number of years it will take for Zac to recoup his total investment, we divide the total cost by the total yearly rent.
[tex]\[ \text{Years needed} = \frac{£350,000}{£21,300} = 16.431 \][/tex]
Rounding this value to 1 decimal place gives us:
[tex]\[ \text{Years needed} = 16.4 \][/tex]
### Summary
Therefore, it will take Zac approximately 16.4 years of renting the flats to get back all the money he has paid.
