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In: Economics

Recently, A spent 180 million won to buy condominiums for investment purposes. 30 million won was...

Recently, A spent 180 million won to buy condominiums for investment purposes. 30 million won was paid in its own money for the purchase cost, and the remaining 150 million won was 9 percent of the monthly benefits for 30 years, with the same repayment terms at the end of each month using bank loans. If the condo was sold for 250 million won five years after purchase, what is the present value of the profits from the investment? However, without considering taxes, it is assumed that the principal of the bank loan is repaid immediately after the sale. Mr. A's bank interest rate is 0.5% per month.

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Rahul Sunny answered 9 months ago
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