alleryStart learning →A house worth 100,000 is sold forward for a year at a 4 percent risk-free rate. Seller wants at least
A96,000
B100,000
C104,000
D140,000
Answer & Solution
Correct answer: C. 104,000
100,000 invested for a year at 4 percent grows to 104,000, the minimum compensation for delayed sale.
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