The construction of a house now, to cost 500,000. b. The construction of a smaller house now, to cost 250,000 and at the end of 3 years, an extension to be added to cost 350,000. Which of the two options is more economical if the interest rate is 20% compounded annually and depreciation not to be considered?

The construction of a house now, to cost 500,000. b. The construction of a smaller house now, to cost 250,000 and at the end of 3 years, an extension to be added to cost 350,000. Which of the two options is more economical if the interest rate is 20% compounded annually and depreciation not to be considered?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter16: Real Estate And High-risk Investments

Section: Chapter Questions

Problem 2FPC

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