Investment Property Balance Sheet

The balance sheets at the end of each of the first two years of operations indicate the following:
2006 2005
Total current assets $600,000 $560,000;
Total investments 60,000 40,000 ;
Total property 900,000 700,000;
Total current liab 150,000 80,000;
Total long-term liab 350,000 250,000 ;
Preferred 9% stock$100p 100,000 100,000 ;
Common stock, $10 par 600,000 600,000;
Paid-in capital CS 60,000 60,000;
Retained earnings 325,000 210,000;
Net income is 115,000 and interest expense is 30,000. What is the rate earned on total assets (equation is net income plus interest expense divided by average of total assets) round the nearest decimal point
1) 9.3%
2)10.1%
3)8.0%
4)7.4%