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An investor buys a property for $656,000 with a 25-year mortgage and monthly payments at 8.9% APR. After 18 months the investor resells the property
An investor buys a property for $656,000 with a 25-year mortgage and monthly payments at 8.9% APR. After 18 months the investor resells the property for $721,939. How much cash will the investor have made from the sale, once the mortgage is paid off? O A. $77,351 OB. $61,880 O C. $154,701 OD. $108,291 Elinore is asked to invest $4,800 in a friend's business with the promise that the friend will repay $5,280 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $5,232 in one year's time. U.S. securities of similar term offer a rate of return of 6%. What is the opportunity cost of capital in this case? OA. 6% OB. 11% O C. 10% OD. 9%
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