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?

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.

answer; i believe that the correct answer is ( owners investment)

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

i hope this you! : )