Installment Contracts Glenda sold her house under an installment contract whereby the buyer gave her a down payment of $25,000 and agreed to make monthly payments of $875/month for 30 years. If the prevailing interest rate is 5%/year compounded continuously, find the present value of the purchase price of the house. (Round your answer to the nearest dollar.)

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
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Installment Contracts Glenda sold her house under an installment contract whereby the buyer gave her a down payment of $25,000 and
agreed to make monthly payments of $875/month for 30 years. If the prevailing interest rate is 5%/year compounded continuously, find the
present value of the purchase price of the house. (Round your answer to the nearest dollar.)
Transcribed Image Text:Installment Contracts Glenda sold her house under an installment contract whereby the buyer gave her a down payment of $25,000 and agreed to make monthly payments of $875/month for 30 years. If the prevailing interest rate is 5%/year compounded continuously, find the present value of the purchase price of the house. (Round your answer to the nearest dollar.)
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