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Compute its optimal selling value

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Question - You bought a regular house which current value is 500,000. If the value of the house grows according to the formula V= 500,000 x (0.9t +1)1/3. The interest rate is 5% per year semi-annually compounded, t stands for time and is measured in years. Time is set to zero at the present time.

Required -

1. When is the optimal time to sell the house?

2. Compute its optimal selling value?

Reference no: EM132714207

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