A multinational engineering consulting firm that wants to provide resort accommodations to special clients is considering the purchase of a three-bedroom lodge in upper Montana that will cost $650,000. The property in that area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If the company spends an average of $500 per month for utilities and the market value of the property increases at a rate of 0.75% per month, how long will it be before the company can sell the property for $100,000 more than it has invested in it with market appreciation included? (Round the final answer to the nearest whole number.) It will take months before the company can sell the property.
A multinational engineering consulting firm that wants to provide resort accommodations to special clients is considering the purchase of a three-bedroom lodge in upper Montana that will cost $650,000. The property in that area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If the company spends an average of $500 per month for utilities and the market value of the property increases at a rate of 0.75% per month, how long will it be before the company can sell the property for $100,000 more than it has invested in it with market appreciation included? (Round the final answer to the nearest whole number.) It will take months before the company can sell the property.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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am. 181.
Transcribed Image Text:A multinational engineering consulting firm that wants to provide resort accommodations to special clients is considering the purchase
of a three-bedroom lodge in upper Montana that will cost $650,000. The property in that area is rapidly appreciating in value because
people anxious to get away from urban developments are bidding up the prices. If the company spends an average of $500 per
month for utilities and the market value of the property increases at a rate of 0.75% per month, how long will it be before the company
can sell the property for $100,000 more than it has invested in it with market appreciation included? (Round the final answer to the
nearest whole number.)
It will take
months before the company can sell the property.
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