A man purchased a house for Php 425,000.00 In the first month that he owned the house, he spent Php 75,000 on repairs and remodeling. Immediately after the house was remodeled, he was offered Php 545,000 to sell the house. After some consideration, he decided to keep the house and have it rented for Php 4,500 per month starting two months after the purchase. He collected rent for 15 months and then sold the house for Php 600,000. If the interest rate was 1.5% per month, how much extra money did he make or lose by not selling the house immediately after it was remodeled?
A man purchased a house for Php 425,000.00 In the first month that he owned the house, he spent Php 75,000 on repairs and remodeling. Immediately after the house was remodeled, he was offered Php 545,000 to sell the house. After some consideration, he decided to keep the house and have it rented for Php 4,500 per month starting two months after the purchase. He collected rent for 15 months and then sold the house for Php 600,000. If the interest rate was 1.5% per month, how much extra money did he make or lose by not selling the house immediately after it was remodeled?
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:A man purchased a house for Php 425,000.00 In the first month
that he owned the house, he spent Php 75,000 on repairs and
remodeling. Immediately after the house was remodeled, he was
offered Php 545,000 to sell the house. After some consideration,
he decided to keep the house and have it rented for Php 4,500 per
month starting two months after the purchase. He collected rent
for 15 months and then sold the house for Php 600,000. If the
interest rate was 1.5$ per month, how much extra money did he
make or lose by not selling the house immediately after it was
remodeled?
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