Business Decision: you are the owner of an apartment building that is being offered for sale for $1,500,000. You receive an offer who wants to pay you $500,000 now, $500,000 in six months and $500,000 in one year. You accept an offer of $500,000 now. $500,000 in 6 months and $500,000 in 1 year with 12% interest compounded monthly on the two delayed payments. Calculate the total purchase price.
Business Decision: you are the owner of an apartment building that is being offered for sale for $1,500,000. You receive an offer who wants to pay you $500,000 now, $500,000 in six months and $500,000 in one year. You accept an offer of $500,000 now. $500,000 in 6 months and $500,000 in 1 year with 12% interest compounded monthly on the two delayed payments. Calculate the total purchase price.
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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Business Decision:
you are the owner of an apartment building that is being offered for sale for $1,500,000. You receive an offer who wants to pay you $500,000 now, $500,000 in six months and $500,000 in one year.
You accept an offer of $500,000 now. $500,000 in 6 months and $500,000 in 1 year with 12% interest compounded monthly on the two delayed payments. Calculate the total purchase price.
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