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There is a $ 7 5 0 , 0 0 0 foreclosed home for sale in your neighborhood. You have been pre - qualified for

There is a $750,000 foreclosed home for sale in your neighborhood. You have been pre-qualified for a one-year loan at 8.25% interest to cover the full purchase price and anticipate it will take $72,500 to pay off an existing lien. You also know that you will need to invest $10,000 a month in the house for repairs. You know enough about the market to ascertain that this property will sell for $1,025,500 in one year. If you want at least a 13% return on your investment, should you make the purchase? Show all work please!!

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