Question
A speculator has purchased land along the southern Oregon coast. He has taken out a loan with the end-of year payments of $7,400 for 12
A speculator has purchased land along the
southern Oregon coast. He has taken out a loan with the end-of year payments of $7,400 for 12 years. The Lon is 6%. At the end of 12 years, he believes that he can sell the land for $130,000. If he is correct on the future price, did he make a wise investment?
What is the future value of the loan 12 years from now?
If he is right on the future price, did he make a wise investment?
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
