=+a. Suppose you offer someone whose house is valued at $400,000 an annual annuity payment (beginning next

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=+a. Suppose you offer someone whose house is valued at $400,000 an annual annuity payment

(beginning next year) of $50,000. Suppose the interest rate is 10% and housing appreciates in value at the interest rate. This will turn from a good deal to a bad deal for you when the person lives n number of years. What’s n? (This might be easiest to answer if you open a spreadsheet and you program it to calculate the value of annuity payments into the future.)

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