Question
You bought a regular house which current value is 500,000. If the value of the house grows according to the formula V= 500,000 x (0.9t
You bought a regular house which current value is 500,000. If the value of the house grows according to the formula V= 500,000 x (0.9t +1)1/3. The interest rate is 5% per year semi-annually compounded. t stands for time and is measured in years. Time is set to zero at the present time.
- When is the optimal time to sell the house?
- Compute its optimal selling value
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
978-0078025587
