You bought an apartment. Its market value as of today is 150 000 zł. Each year you can get 15 000 zł for renting out this apartment. In addition, each year, the market value of this apartment increases by 10 000 zł. An alternative to this investment is to buy obligations, which will give 12.5% each year. After how many years will you sell the apartment?
You bought an apartment. Its market value as of today is 150 000 zł. Each year you can get 15 000 zł for renting out this apartment. In addition, each year, the market value of this apartment increases by 10 000 zł. An alternative to this investment is to buy obligations, which will give 12.5% each year. After how many years will you sell the apartment?
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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You bought an apartment. Its market value as of today is 150 000 zł. Each year you can get 15 000 zł for renting out
this apartment. In addition, each year, the market value of this apartment increases by 10 000 zł. An alternative to this
investment is to buy obligations, which will give 12.5% each year. After how many years will you sell the apartment?
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