A Real Estate Agent Wants You to Buy a Plot

question 65

Multiple Choice

A real estate agent wants you to buy a plot of land today for $60,000 and he promises that you can sell it back to him in 7 years for $100,000.If you can earn 9% on alternative investments,then what is the present value of the sales proceeds? Is this a worthwhile investment?

• A) $54,703.42; it is not a worthwhile investment.
• B) $54,703.42; it is a worthwhile investment.
• C) $61,294.51; it is not a worthwhile investment.
• D) $61,294.51; it is a worthwhile investment.
• E) $60,000; not enough information.

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Definitions:

Mitral Valve

The valve located between the left atrium and left ventricle of the heart, which regulates blood flow within the heart.

Cusps

Pointed or rounded projections on the chewing surface of teeth, important for tearing and grinding food.

Left Atrium

The upper left chamber of the heart, which receives oxygenated blood from the lungs and pumps it into the left ventricle.

Tachycardia

A condition characterized by an abnormally fast heart rate, typically defined as a heart rate of over 100 beats per minute in adults.