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An investor has $85,000 in a bank account at 6% interest compounded annually.They can use this sum to pay for the purchase of a plot
An investor has $85,000 in a bank account at 6% interest compounded annually.They can use this sum to pay for the purchase of a plot of land.They expect that in 10 yrsthey will be able to sell the land for $155,000.During that period they will have to pay $3000 a year in property taxes and insurance.Should they make the purchase based on a rate of return analysis?
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