Ask Question
12 September, 18:20

You just so happen to have $300,000 in your savings account, which pays a guaranteed %5.0 annual interest. You invest the entire amount into buying house, and sell the house three years later for $351,700. Is this a good investment?

+5
Answers (1)
  1. 12 September, 19:38
    0
    In this instance you will need to calculate the future value of the investment. The formula for this is FV = I * [1 + (R * T) ]

    FV - future value

    I - initial investment (300,000)

    R - Interest Rate (5%)

    T - number of years you will hold the investment (3 years)

    Once you calculate this formula, you will need to compare it to the price of the home if they sold it (351,700). If the future value calculation is LESS than the sales price, then the house was a GOOD investment.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You just so happen to have $300,000 in your savings account, which pays a guaranteed %5.0 annual interest. You invest the entire amount ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers