A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of $7,600 for 8 years. The loan rate is 6%. At the end of 8 years, he believes that he can sell the land for $80,000. If he is correct on the future price, did he make a wise investment?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of
for
years. The loan rate is
At the end of
years, he believes that he can sell the land for
If he is correct on the future price, did he make a wise investment?
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