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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question
Question Posted: