You're planning on constructing a building that will be sold to somebody else at$12'500.000 ten years from now. You can, in the other hand, invest in a bond that pays 8%. If you are asked to invest $6'000.000 in the building, would you recommend to invest or not?
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.
3. You're planning on constructing a building that will be sold to somebody else at$12'500.000 ten years from now. You can, in the other hand, invest in a bond that pays 8%. If you are asked to invest $6'000.000 in the building, would you recommend to invest or not?
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