You are buying an investment property for $362,854 today. Through research, you have determined that the value of the property is likely to grow at a rate of 7.8% per year, on average. How long until the value of the property grows to $528,707?

Your goal is to spend a year traveling around the world.  You assume that it will cost $100,000 to accomplish this goal and you have 10 years to save for it.  You presently have $10,000 to invest.  What annual rate of compounding interest must you earn on your investment to cover the cost of this trip?

2. You plan to purchase an office space in Chamblee's Chinatown for $50,000 at the end of year 2021. You estimate that by renting out that office space, you will receive a stream of rental income for the coming eight years at the end of each year as shown in below. After eight years, you estimate that you can still sell the office space for $45,000 at the end of the eighth year. Is this project a good investment if you project that the normal rate of return in this line of business is 12%? How about if the general rate of return is 15% ? 8%? Year 1 $6,000 Year 5 $7,500 Year 2 $6,500 Year 6 $8,500 Year 3 $7,000 Year 7 $8,500 Year 4 $7,500 Year 8 $8,500 3. Based on the information provided in Step 2 above, compute the Internal Rate of Return for the investment. 4. While you were waiting for your first job interview results to come, you spent several dollars to buy a Georgia Educational Lotto and were lucky enough to win a $1 million prize. The prize is to be awarded in 20 annual payments…

Considering an interest rate of 8%, that the cost of the equipment is $300,000 and you will replace the equipment after 7 years, what is the annual cost if the expected salvage value is $75,000?