A sports mortgage is the brainchild of Stadium Capital Financing Group. It is an innovative way to
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A sports mortgage is the brainchild of Stadium Capital Financing Group. It is an innovative way to finance cash-strapped sports programs by allowing fans to sign up to pay a "mortgage" over a certain number of years for the right to buy good seats at football games for several decades with season ticket prices locked in at current prices. Assume fan X purchases a $130,000 mortgage and pays for it now to get season tickets for $290 each for 50 years, while fan Y purchases a $90,000 mortgage and pays for it now to get season tickets for $320 each for 25 years. Assume interest rate is 8% per year. Question 25 (7 points) Use LCM of 50 years to determine the present worth of ticket option used by Fan X. $-133,548 $-113,548 $-103,548 $-123,548 Question 26 (7 points) Use LCM of 50 years to determine the present worth of ticket option used by Fan Y. $-137,055 $-127,055 $-117,055 $-107,055 A sports mortgage is the brainchild of Stadium Capital Financing Group. It is an innovative way to finance cash-strapped sports programs by allowing fans to sign up to pay a "mortgage" over a certain number of years for the right to buy good seats at football games for several decades with season ticket prices locked in at current prices. Assume fan X purchases a $130,000 mortgage and pays for it now to get season tickets for $290 each for 50 years, while fan Y purchases a $90,000 mortgage and pays for it now to get season tickets for $320 each for 25 years. Assume interest rate is 8% per year. Question 25 (7 points) Use LCM of 50 years to determine the present worth of ticket option used by Fan X. $-133,548 $-113,548 $-103,548 $-123,548 Question 26 (7 points) Use LCM of 50 years to determine the present worth of ticket option used by Fan Y. $-137,055 $-127,055 $-117,055 $-107,055
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