|
Holland, Indiana (SW IN) | So basically a math (or accounting) question
Getting a yearly rent payment on an asset of lets say $10,000 best I remember use a current interest rate I'll use 5%
So 10,000 divided by .05 = $200,000 is the current value of the asset
And that would be considered value unless big change in interest rates
But what if you are getting a 3% inflation bump every year so first year get $10,000 next year 10,300 the next year 10,609, 4th year 10,927 etc for 30 years total
What is considered value today
Dan | |
|
figuring the value of an asset with a 3% inflation
