4. 2. A house in the city center of Guangzhou is for sale at the price of US$100,000 dollars, and the market expects it to be worth $130,000 and to be sold easily in 2 years’ time. You are now given a choice of a 2-year housing loan by Bank of China at an interest rate of 8% per year (single rate of the principal, not compounded), should you take the loan to buy that house? And how much profit can you earn?

4. 2. A house in the city center of Guangzhou is for sale at the price of US$100,000 dollars, and the market expects it to be worth $130,000 and to be sold easily in 2 years’ time. You are now given a choice of a 2-year housing loan by Bank of China at an interest rate of 8% per year (single rate of the principal, not compounded), should you take the loan to buy that house? And how much profit can you earn?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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