Question
A landlord wants to work only 10 more years and then retire. The landlord currently has $310,000 in the bank. The landlord plans to purchase
A landlord wants to work only 10 more years and then retire. The landlord currently has $310,000 in the bank. The landlord plans to purchase a $260,000 apartment complex as an investment. The landlord also plans to invest the other $50,000 and aim to have $1 million between the two investments to retire on. The landlord realizes that a 2% return in a certificate of deposit will never allow him to reach his goal of $1 million in 10 years. Presuming his apartment will indeed be worth $400,000 in 10 years, compute the future value of the landlord's $50,000 investment using a 10%, 15%, and 20% return compounded semiannually for 10 years. Find the future value of the $50,000 investment using a 10% return compounded semiannually for 10 years.
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