In relation to the rental income, what rate of interest does the offer made in Question 45.7
Question:
In relation to the rental income, what rate of interest does the offer made in Question 45.7 represent?
Data from Question 45.7
Should you accept an offer of £50,000 for your rights over the next 12 years to the £5,000 annual rent from shop premises you own and have leased to a local company? You could invest the £50,000 at 6 per cent per annum.
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To calculate the rate of interest of the offer we can use the following formula Rate of inte...View the full answer
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Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
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