Future value a speculator has purchased land along the, Ask an Expert

Finance

Future value. A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of $7,000 for 8 years. The loan rate is 8 %. At the end of 8 years, he believes that he can sell the land for $60,000. If he is correct on the future price, did he make a wise investment?

What is the future value of the loan 8 years from now?

If he is right on the future price, did he make a wise investment ?(Select the best response)

A. Yes. He will make a profit because the value of the land is less than the future value of the loan.Yes. He will make a profit because the value of the land is less than the future value of the loan.

B. No. He will encounter a loss because the value of the land is greater than the future value of the loan.No. He will encounter a loss because the value of the land is greater than the future value of the loan.

C. Yes. He will make a profit because the value of the land is greater than the future value of the loan.Yes. He will make a profit because the value of the land is greater than the future value of the loan.

D. No. He will encounter a loss because the value of the land is less than the future value of the loan.No. He will encounter a loss because the value of the land is less than the future value of the loan.

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M92173725

Have any Question?Write your Review or question?

Related Questions in Financial Management

Assignmentnow that you have gained an understanding of red

Assignment Now that you have gained an understanding of Red Carpet, Leroy has asked you to join in on a preliminary meeting with the VP of HR and other members of the organization to discuss change. The meeting was very ...

Understanding the health care reform acthow has the patient

Understanding the Health Care Reform Act How has the Patient and Affordable Care Act of 2010 (the "Health Care Reform Act") reshaped financial arrangements between hospitals, physicians, and other providers with Medicare ...

Corporate financial management questions -part a -q1 200

Corporate Financial Management Questions - Part A - Q1. $200 invested today and earning 8 per cent per annum compounded semi-annually will grow to what amount at the end of three years? (A) $158.80 (B) $251.94 (C) $380.7 ...

Assignment for pogo managing government finances -the

Assignment for POGO Managing Government Finances - The assignment questions are drawn from topics that may ask you to integrate the topics covered across the entire course - or certainly link different topics together in ...

Case 1 hedging currency risks at aifsinstructionsplease

Case 1: Hedging Currency Risks at AIFS Instructions: Please download the case and accompanying material from the HBS link that I provided on Canvas. For your analysis of the case, I am asking you put yourself in the shoe ...

Assignmentassignment purposes1 evaluate the characteristics

Assignment Assignment Purposes: 1. Evaluate the characteristics of e-commerce. 2. Demonstrate effective use of technology for communication. 3. Evaluate the effectiveness of an e-commerce Web site. 4. Explain the securit ...

Answer each question in 75 words a piece use references if

Answer EACH question in 75 words A PIECE. Use references, if needed and cite. 1. Embark on a virtual field trip. Researching online, explore different career fields that interest you. Share with your classmates which car ...

Assignmentthe interview assignment asks you to perform an

Assignment The interview assignment asks you to perform an informational interview with a professional within the Fitness and Wellness industry. The person does not have to be an owner but simply someone who is or has be ...

Situationthe law affects the business environment and every

Situation The law affects the business environment and every single business and organization. These laws and regulations often come to light in current events as businesses find themselves represented in the press, eith ...

Assignmentq1xyz company uses anbspperiodic inventory system

Assignment Q1. XYZ Company uses a periodic inventory system. The beginning balance of inventory and the purchases made by XYZ during the month of July are given below: Date Description Units Unit cost Total cost July 01 ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Financial Management Expert