When determining the value of a property using the Sales Comparison Approach (also known as the Market Data Approach) the apprai
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Answer:
Explanation:
The timeline would be as follows:
During the first 10 years, we deposit 5,000 at 7% market rate.
Then we withdraw at the beginning of Year eleven during 17 year. The market price for this period is 6%
First Step amount at end of year 10
FV = $69,082.24
Then, we are going to calculate how much can be withdraw during 17 years
At the beginning of the period at 6% rate
From the PV formula, we clear the Cuota and then we divide by 1.06 because we are doing an<em> annuity-due. </em><em>The amount is withdraw at the beginning of the period. </em>That's why we add a new element.
C = 6220.32