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You have bought a house today at the price of $500,000. In the next two years, you will get a rent of $50,000 each year.
You have bought a house today at the price of $500,000. In the next two years, you will get a rent of $50,000 each year. In year 3, you will sell the house at the price of $800,000. Suppose the discount rate (interest rate) is always 10% each year 18. Suppose that the price for selling the house in year 3 is unknown, but we know the present value for all the cash flows is $200,000, what is the price for selling your house
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