Tiko is a real estate professional representing a client who owns an aging low-rise office tower....

 

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Tiko is a real estate professional representing a client who owns an aging low-rise office tower. The client would like to sell the property in 3 years but is worried he will not get the price he wants. Tiko advises the client that remodeling the exterior would enhance the buildings appeal to potential buyers. The client obtains a quote for $50,000 to remodel the exterior, but cannot afford that much right now. Tiko tells the client that he can set aside funds each year over the next 3 years so he can complete the remodeling just before selling the property. The client takes Tiko's advice and finds an interest bearing account with an annual interest rate of 4%. The client plans on making payments in advance and having the remodeling done at the end of the 3 years. How much does the client need to set aside each year to fund the remodeling? Tiko is a real estate professional representing a client who owns an aging low-rise office tower. The client would like to sell the property in 3 years but is worried he will not get the price he wants. Tiko advises the client that remodeling the exterior would enhance the buildings appeal to potential buyers. The client obtains a quote for $50,000 to remodel the exterior, but cannot afford that much right now. Tiko tells the client that he can set aside funds each year over the next 3 years so he can complete the remodeling just before selling the property. The client takes Tiko's advice and finds an interest bearing account with an annual interest rate of 4%. The client plans on making payments in advance and having the remodeling done at the end of the 3 years. How much does the client need to set aside each year to fund the remodeling?

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