Question
5. Mr. Beton Sever pays rent of 1.500 TL per month and saves 2.500 TL. He has 50,000 TL savings in his account. Beton Bey
5. Mr. Beton Sever pays rent of 1.500 TL per month and saves 2.500 TL. He has 50,000 TL savings in his account. Beton Bey has the following investment options:
a- Deposit 2.500 TL in the bank every month. The bank gives a monthly net return of 1.25% to its deposit account.
b- Buy a house. The payment plan of the house includes a down payment of 50.000 TL and a monthly installment of 4.000 TL with a 72-month maturity. Beton Bey will immediately move to the new house after he buys it. Except for the debt installment payments originating from the house, other monthly expenditures will remain constant. Six years later, the house will be sold for 400,000 TL.
Consider both investment alternatives. Which investment provides more return? Concrete Mr.
Decide on your name.
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