An Agreement for Sale contract on a house requires payments of $4,000 at the end of every six months. The contract has seven years to run. The payee wants to sell her interest in the contract. What will an investor pay in order to realize an annually compounded rate of return on the purchase price of:
a) 8%? b) 10%?

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The Answer of An Agreement for Sale contract on a house requires payments of $4,000 at the end of every six months. The contract has seven years to run. The payee wants to sell her interest in the contract. What will an investor pay in order to realize an annually compounded rate of return on the purchase price of:
a) 8%? b) 10%?

An Agreement for Sale Contract on a House Requires Payments