Suppose you quit your job as an accountant earning an annual salary of $50,000 to buy foreclosed homes,fix them up,and then resell them.You have $200,000 of your own money to invest in this,half of which you use to purchase three homes for a combined $500,000 (borrowing the remaining $400,000),and spend the remaining $100,000 of your money on materials.Over the course of one year you fix up all three homes and resell them for a total of $700,000.Assume that your loan to purchase the homes is payable in one lump sum at the end of one year.If you can borrow and lend money at a 6% annual rate of interest,what was your total cost of renovating these three homes?

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The Answer of Suppose you quit your job as an accountant earning an annual salary of $50,000 to buy foreclosed homes,fix them up,and then resell them.You have $200,000 of your own money to invest in this,half of which you use to purchase three homes for a combined $500,000 (borrowing the remaining $400,000),and spend the remaining $100,000 of your money on materials.Over the course of one year you fix up all three homes and resell them for a total of $700,000.Assume that your loan to purchase the homes is payable in one lump sum at the end of one year.If you can borrow and lend money at a 6% annual rate of interest,what was your total cost of renovating these three homes?

Suppose You Quit Your Job as an Accountant Earning an Annual