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It is T_0 and Joe has just sold his house for $200,000 to Flo on a land contract. Here are the terms of the contract:
It is T_0 and Joe has just sold his house for $200,000 to Flo on a land contract. Here are the terms of the contract: Flo will not make any payments in each of the years T_1 mdash T_2. She will make a payment of $25,000 in T_3; $30,000 in T_4; and $35,000 in T_5. She will make a final "balloon" payment of $X at the end of T_6 to settle up any remaining balance. Calculate $X. SET-UP ONLY - Type your answer. Equate cash Flows in
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