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Please help with the following problem with clear explinations! thank you! you are considering the purchase of a rental property for $200,000, with a $50,000
Please help with the following problem with clear explinations! thank you!
you are considering the purchase of a rental property for $200,000, with a $50,000 clown payment. Cash flows will be $4,000 every year for 15 years. The loan balance will be $100,000 at the end of 15 years. For what price must you sell the property at the end of 15 years to provide an effective annual return of 8 percent on your equity investment? (Assume year-end cash flows).
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