The annual income from a rented house is $26,400. The annual expenses are $7200. If the house can be sold for $255,000 at the end of 12 years, how much could you afford to pay for it now, if you considered 8% to be a suitable interest rate?
The annual income from a rented house is $26,400. The annual expenses are $7200. If the house can be sold for $255,000 at the end of 12 years, how much could you afford to pay for it now, if you considered 8% to be a suitable interest rate?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 6P
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The annual income from a rented house is $26,400. The annual expenses are $7200. If the house can be sold for $255,000 at the end of 12 years, how much could you afford to pay for it now, if you considered 8% to be a suitable interest rate?
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