In relation to the rental income, what rate of interest does the offer made in question 33.7

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In relation to the rental income, what rate of interest does the offer made in question 33.7 represent?

Question 33.7

Should you accept an offer of £15,000 for your rights over the next four years to the

£4,000 annual rent from shop premises you own and have leased to a local company? You could invest the £15,000 at 10 per cent per annum.

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Business Accounting

ISBN: 9780273619826

7th Edition

Authors: Frank Wood, Alan Sangster

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