School of Business Administration

Homework Chapters $27$ & $29$ Macroeconomics Spring $2024$ Problem I

a$)$ An investor in real estate is expecting to triple his income in $4$ years what is the appropriate interest rate to accomplish his objective $.$

b$)$ Assume the same investor in real estate given the real interest rate of $9\%$ how many years it will take to Quadruple his income?

c$)$ The same investor in the real estate invests $15$ millions of dollars and expecting to earn $30$ millions of dollars in $4$ years what is the minimum interest to accomplish his objective.?

d$)$ The same investor in real estate invests in hotels $80$ millions of dollars and his expecting to earn $300$ million in $15$ years with an interest rate of $11\%$; Is the investment profitable $?$ justify your answer.