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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, there is no rent income but you will sell the house at the price of $800,000. Suppose the discount rate (interest rate) is always 10% each year. What is the present value at time zero for the rent income at year 1? Select one: a. $50,000.00 O b. $41,322.31 O c. $45,454.55 O d. $42,455.55 O e. None of the above
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