Bob and Jim are both looking to purchase the same house that costs $500,000. Bob plans to
Fantastic news! We've Found the answer you've been seeking!
Question:
Bob and Jim are both looking to purchase the same house that costs $500,000. Bob plans to make a 10% down payment and take a $450,000 mortgage for the rest of the payment (mortgage cost is 5% annually). Jim wants to purchase the house for $500,000 cash today.
Required
Who will realize a higher return on investment if they sell the house for $550,000 a year from today? Show your calculations
Related Book For
Posted Date: