You are buying an investment property for $362,854 today. Through research, you have determined that the value of the property is likely to grow at a rate of 7.8% per year, on average. How long until the value of the property grows to $528,707?
You are buying an investment property for $362,854 today. Through research, you have determined that the value of the property is likely to grow at a rate of 7.8% per year, on average. How long until the value of the property grows to $528,707?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You are buying an investment property for $362,854 today. Through research, you have determined that the value of the property is likely to grow at a
rate of 7.8% per year, on average. How long until the value of the property grows to $528,707?
Expert Solution
Step 1
It can be calculated using
=NPER(rate,pmt,pv,[fv],[type])
- Rate The interest rate for the loan.
- Nper The total number of payments for the loan.
- Pmt = payment per period
- Pv The present value
- Fv The future value
- Type The number 0 (zero) or 1 and indicates when payments are due.
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