Suppose a condo generates $$15,000$ in cash flows in the first year. If the cash flows grow at $5\%$ per year, the interest rate is $9\%,$ and the building will be torn down in $20$ years $($the building is worthless after $20$ years$),$ what is the most you would pay for the condo today?

Enter your response below $($rounded to $2$ decimal places$).$

Correct response: $197,463\mathrm{.}65+-10$

Suppose instead, the building will be sold at the end of $20$ years for $$90,000,$ Using $$197,463\mathrm{.}65$ as the present value of the rental cash flows, what is the most you would be willing to pay for the condo today?

Enter your response below $($rounded to $2$ decimal places$).$

Section Attempt $1$ of $1$