Question
Your great aunt has decided she wants to retire in 10 years and live off of nothing but cash. She has worked for 30 years
Your great aunt has decided she wants to retire in 10 years and live off of nothing but cash. She has worked for 30 years building her business but is quite short when it comes to cash. She has agreed to sell you her business for the low price of $100,000 in 10 years. You have done your due diligence and realize that this is a great deal and you would love to buy the business and take it over. She has worked out a deal with her bank and they have decided that they will give you a generous interest rate of 8% since they will handle the escrow and transfer of the business documents seamlessly. If you were to deposit $600/month ($7,200/year) would you be able to afford her business in 10 years?
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