Question

An investor agreed to sell a warehouse 5 years from now to the tenant who currently rents the space. The tenant will continue to pay $20,000 rent at t?

Answer 1

The future value of selling the warehouse to the tenant in 5 years is $20,000.

Step-by-step explanation:

The question is asking about the future value of selling a warehouse to a tenant in 5 years. To calculate the future value, we can use the formula:

Future Value = Present Value * (1 + Interest Rate)Number of years

Given the information provided, we can calculate the future value by:

• Present Value = $20,000
• Interest Rate = 0 (since no interest rate is mentioned)
• Number of years (t) = 5

Using these values, we can calculate the future value as:

Future Value = $20,000 * (1 + 0)5 = $20,000

Therefore, the future value of selling the warehouse to the tenant in 5 years is $20,000.