A couple bought a home and financed $60,000 at 13.5%. Three months later they were transferred and carried back a land contract for $72,000 at 14.5%. What was their effective yield on the $12,000 investment?

To calculate the effective yield on the $12,000 investment, we need to compare the interest earned from the land contract with the interest earned from the financed amount. Here's how to calculate it:

1. Calculate the interest earned from the financed amount:
- Principal: $60,000
- Interest rate: 13.5%
- Time: 3 months (0.25 years)
- Interest earned: Principal x Interest rate x Time
Interest earned = $60,000 x 0.135 x 0.25

2. Calculate the interest earned from the land contract:
- Principal: $12,000
- Interest rate: 14.5%
- Time: 12 months (1 year)
- Interest earned: Principal x Interest rate x Time
Interest earned = $12,000 x 0.145 x 1

3. Calculate the effective yield on the $12,000 investment:
- Effective yield = (Interest earned from land contract - Interest earned from financed amount) / Investment
- Effective yield = (Interest earned from land contract - Interest earned from financed amount) / $12,000

Substituting the calculated values:
Effective yield = (($12,000 x 0.145 x 1) - ($60,000 x 0.135 x 0.25)) / $12,000

Now, you can solve the equation to find the effective yield on the $12,000 investment.