A MAN PURCHASES A HOUSE AND LOT, AND AGREES TO PAY $850,000 CASH AND $25,000 AT THE END OF EACH MONTH FOR 20 YEARS. WHAT IS THE CASH VALUE OF THE HOUSE AND LOT IF MONEY IS WORTH 9% COMPOUNDED MONTHLY? ANS SHOULD BE: $3,628,623.85

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A MAN PURCHASES A HOUSE AND LOT, AND
AGREES TO PAY $850,000 CASH AND $25,000 AT
THE END OF EACH MONTH FOR 20 YEARS. WHAT
IS THE CASH VALUE OF THE HOUSE AND LOT IF
MONEY IS WORTH 9% COMPOUNDED MONTHLY?
ANS SHOULD BE: $3,628,623.85
Transcribed Image Text:A MAN PURCHASES A HOUSE AND LOT, AND AGREES TO PAY $850,000 CASH AND $25,000 AT THE END OF EACH MONTH FOR 20 YEARS. WHAT IS THE CASH VALUE OF THE HOUSE AND LOT IF MONEY IS WORTH 9% COMPOUNDED MONTHLY? ANS SHOULD BE: $3,628,623.85
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