Mathematics, 03.05.2020 13:23 321596
Say you buy an house as an investment for 250000$ (assume that you did not need a mortgage). You estimate that the house will increase in value continuously by 31250$ per year. At any time in the future you can sell the house and invest the money in a fund with a yearly interest rate of 8.5% compounded bi-monthly.
If you want to maximize your return, after how many years should you sell the house? Report your answer to 1 decimal place.
Answers: 2
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