A speculator has purchased land along the southern Oregon coast. He has taken out a ten-year loan with annual payments of $7,200. The loan rate is 6%. At the end of ten years, he believes that he can sell the land for $100,000. If he is right on the future price, did he make a wise investment?
A speculator has purchased land along the southern Oregon coast. He has taken out a ten-year loan with annual payments of $7,200. The loan rate is 6%. At the end of ten years, he believes that he can sell the land for $100,000. If he is right on the future price, did he make a wise investment?
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