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
Related questions
Question
Transcribed Image Text:Future value. 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 10 years. The loan rate
is 7%. At the end of 10 years, he believes that he can sell the land for $110,000. If he is correct on the future price, did he make a wise investment?
.....
What is the future value of the loan 10 years from now?
$
(Round to the nearest cent.)
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