A speculator in land and property pays $186 000 for a house that he expects to hold for 10 years. $7,000 is spent in renovation and a monthly rent of $800 is collected from the tenants who live in the house (assume all rent is paid at the end of the year). Taxes are $2500 per year and maintenance costs are $1500 per year. What must the sales price be in 10 years to realize a 6% rate of return?

A speculator in land and property pays $186 000 for a house that he expects to hold for 10 years. $7,000 is spent in renovation and a monthly rent of $800 is collected from the tenants who live in the house (assume all rent is paid at the end of the year). Taxes are $2500 per year and maintenance costs are $1500 per year. What must the sales price be in 10 years to realize a 6% rate of return?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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