ToshaCollins_Unit 7 Assignment

# ToshaCollins_Unit 7 Assignment - C)An advantage of waiting...

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Unit 7 Assignment Challenge Problem A) The buyer should buy now. In two years the value of the property will increase to 32,500 and the buyer will not have enough to purchase then. If the buyer purchases now, he or she will have to pay the 600 penalty, leaving them with a balance of 29,400, which is enough to purchase with. B) Some of the problems that can occur when waiting to buy land are increases in price or the competition from another buyer.
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Unformatted text preview: C)An advantage of waiting could be a decrease in price. D) (15,600)(1+.02) = 15,912 (15,912)(1+.02) = 16,230.24 312.00 E) (60,000)(1+.05) = 63,000 (63,000)(1+.05) = 66,150 66150-60000= 6150.00 60000-6150 = 53,850 for car Case Study 10-1 1. 6% / 12 = .06/12 = .005 (35)(12) = 420 2000(1+.005) 420-2000 = 4,200 2. 6%/12 = .06/12 = .005 (25)(12) = 300 2000(1+.005) 300-2000 = 3,000 3. FV = \$1(1+R) N at 10% = 8 yr 4. at 12% = 7 yr...
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## This note was uploaded on 06/10/2010 for the course BU 250 BU250 taught by Professor Prof during the Fall '10 term at Kaplan University.

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