You bought an apartment. Its market value as of today is 150 000 zł. Each year you can get 15 000 zł for renting out this apartment. In addition, each year, the market value of this apartment increases by 10 000 zł. An alternative to this investment is to buy obligations, which will give 12.5% each year. After how many years will you sell the apartment?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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You bought an apartment. Its market value as of today is 150 000 zł. Each year you can get 15 000 zł for renting out
this apartment. In addition, each year, the market value of this apartment increases by 10 000 zł. An alternative to this
investment is to buy obligations, which will give 12.5% each year. After how many years will you sell the apartment?

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