Question
Future value. A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of $7,800 for 9
Future value.
A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of $7,800 for 9 years. The loan rate is 8%. At the end of 9 years, he believes that he can sell the land for $80,000.
If he is correct on the future price, did he make a wise investment?
What is the future value of the loan 9 years from now?
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
