Doris Wade purchased a condominium for $50,000 in 1987. Her down payment was $20,000. She financed the

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Doris Wade purchased a condominium for $50,000 in 1987. Her down payment was $20,000.

She financed the remaining amount as a $30,000, 30-year mortgage at 7%, compounded monthly.

Her monthly payments are $200. It is now 2007 (20 years later) and Doris has sold the condominium for $100,000, immediately after making her 240th payment on the unit.

Her effective annual internal rate of return on this investment is closest to which answer below?

(A) 3.6%

(B) 8.5%

(D) 1.5%

Related Book For answer-question

Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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Posted Date: Sep 06, 2018 03:12 AM

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Doris Wade purchased a condominium for $50,000 in 1987. Her down payment was $20,000. She financed the

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Condominium Value 50000 Down Payment 20000 Loan amount 30000 Monthly payment 200 Sale ... View the full answer

Engineering Economy

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