Question
A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of $7,000 for 12 years. The
A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of $7,000 for 12 years. The loan rate is 6%. At the end of 12 years, he believes that he can sell the land for $120,000. 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?
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Principles Of Macroeconomics
Authors: Frank, Bernanke, Antonovics, Heffetz
3rd Edition
1259117162, 9781259117169
