A MAN PURCHASES A HOUSE AND LOT, ANDAGREES TO PAY $850,000 CASH AND $25,000 ATTHE END OF EACH MONTH FOR 20 YEARS. WHATIS THE CASH VALUE OF THE HOUSE AND LOT IFMONEY IS WORTH 9% COMPOUNDED MONTHLY?ANS SHOULD BE: $3,628,623.85

Given Down payment = 850000 Payment each month = 25000 Time = 20 years Interest rate = 9 %…

Answered: A MAN PURCHASES A HOUSE AND LOT, AND…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A MAN PURCHASES A HOUSE AND LOT, AND AGREES TO PAY $850,000 CASH AND $25,000 AT THE END OF EACH MONTH FOR 20 YEARS. WHAT IS THE CASH VALUE OF THE HOUSE AND LOT IF MONEY IS WORTH 9% COMPOUNDED MONTHLY? ANS SHOULD BE: $3,628,623.85