You just purchased a parcel of land for 10,000. If you expect a 12% annual rate of return on your investment, how much will you sell the land for in 10 years?

Q: You are going to receive $50 at the end of each year for the next 6 years. If you invest each of…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: You are scheduled to receive $44,000 in two years. When you receive it, you will invest it for 7…

A: Computation:

Q: You plan to save $250 a month for the next 24 years and hope to earn an average rate of return of…

A: Future value is the sum of money invested over a period of time under the premise that the…

Q: account

A: Introduction: Investments are made by depositing a certain sum of money in the account. At the end…

Q: Assume that you purchase a property for $2,000,000 and it generates $25,000 per month of rental…

A: Rate of return refer to the value of investment that is to be earned in a specified period of time…

Q: You just purchased a parcel of land for $10,000. If you expect a 12% annual rate of return on your…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: You need to have $150,000 in 10 years to buy a house. You already have $70,000. What would be the…

A: The rate required to earn the future value using the present value is the compounding rate.

Q: required 10% return on his money. A property had gross annual income of $110,000, a vancy rate of…

A: The property is long term investment and valuation of property is done based on the earning…

Q: A perpetuity pays an annual dividend of $25. If you want to earn a 10% rate of return on this…

A: In this question we require to calculate the amount we should pay for the perpetuity i.e. we need to…

Q: Should you buy an asset that will generate income of $1,000 per year for 10 years? The price of the…

A: YEAR CASH FLOW      0 -7500 1 1000 2 1000 3 1000 4 1000 5 1000 6 1000 7 1000 8…

Q: Assume that you purchase a property for $2,000,000 and it generates $15,000 per month of rental…

A: The income that is collected from an investment is then divided by the amount of time that the…

Q: suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: When a buyer buys goods from a seller and is not able to pay the entire amount at the time of…

Q: You have $15,000 that you would like to invest for the next 32 years. One option is to invest the…

A: One way to calculate the future value of any invest is to calculate its value after specific period…

Q: You expect to receive $10,000 in two years. You plan on investing it at 9 percent until you have…

A: Amount invested = a = $10,000 Interest rate = r = 9% Future value = $75,000 Time before investment =…

Q: You are considering a 10 year investment plan in which your target is $150,000. There are two…

A: We have to find the annuity that will result into a target FV after a pre determined time period.

Q: Assume that you are valuing an infinitely lived asset that pays $350 at the end of each year. What…

A: Infinite lived asset means asset has no maturity life and we receive annual cash flow at the end of…

Q: You bought a home for $150,000 and put down 10% and got a mortagage at an interest rate of 4.35% per…

A: We will make use of the PMT function in Microsoft Excel to determine the monthly payment on the…

Q: Suppose you have a choice between receiving $5,000 today or $10,000 in five years. You believe you…

A: > Given data:> Present value (PV) = 5000> Interest rate (r) = 10%> Number of periods ()…

Q: Now, drawing on your understanding of the concept of present value, calculate how much you would…

A: Present value is the discounted value of future cashflow

Q: You will receive $5,000 in six years.  When you receive it, you will invest it for 7 more years at…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: comma 900 in one year. If your cost of capital is 7.6 %, what is the NPV of this investment?

A: The net present value calculation aids in determining whether an investment will yield a higher…

Q: You invest a single amount of AED 30000 for 10 years at 7 percent. At the end of 10 years you take…

A: Computation:

Q: Suppose you are 25 years old and just got hired by a company. Your salary next year will be $60,000.…

A: The FV of an investment refers to the amount of the accumulated cash flows assuming they grow at a…

Q: You want to have $500, 000 by saving for the next 10 years. If the annual percentage rate is 12% per…

A: The future value for an annuity refers to cumulative compounded value of all payments or deposits…

Q: $10,000 as a bonus after 6 years. You have calculated the present value of this bonus and the answer…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: You will recieve $4000 three years from now. The discount rate is 10 percent.  c) What is the value…

A: We need use present value formula to solve this problem. Present Value =Future value/(1+r)n Where…

Q: I expect to save $100,000 in 15 years for my kid's college savings account. Assuming I get a return…

A: Discounting is a technique to compute the present value (PV) of future cashflows by using an…

Q: Now, drawing on your understanding of how to calculate present value of future  investment,…

A: interest rate = 12% cumulative present value factor for 10 years = 5.650 future value of investment…

Q: 14,000 as a bonus after 6 years. You have calculated the present value of this bonus and the answer…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: You are scheduled to receive $27,000 in two years. When you receive it, you will invest it for 7…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: You just inherited some money, and a broker offers to sell you an annuity that pays $4,300 at the…

A: Present value of annuity is computed as follows:-PV = A*wherePV= Present value of annuityA= periodic…

Q: a) If you invest $100 every year for the next 20 years starting one year from today and you earn…

A: The Future Value of the Annuity refers to the sum value of all the payments which is occurred…

Q: You have $12,500 you want to invest for the next 20 years. You are offered an investment plan that…

A: Amount we will have at the end of 20 years is future value of current investment

Q: If you were to invest $50,000 from you lottery winnings today, how much will it be worth in 20 years…

A: To find the future value after some specific some time can be found out by the formula of future…

Q: Suppose that you purchase an investment property for $8 million If you purchased the property with a…

A: In finance, the term mortgage represents financial assistance provided by the bank to its customers…

Q: You just won the lottery! As your prize you will receive $2,500 a month for 10 years. If you can…

A: To calculate the prize worth today we will use the below formula   Prize worth today =…

Q: You plan to buy some undeveloped land that should sell for $126,000 in ten years. What is the most…

A: Given: Future value (FV) =$126000No. of years (n)=10 yearsRate of return /interest (r)=18%

Q: You are offered $90000 today or $380000 in 10 years. Assuming that you can earn 15 percent on your…

A: Step 1: Given that, which one should you choose for the offer value today = $90000 or Present value…

Q: an to invest $1,000 at the end of EVERY year for the next 25 years. You believe you can earn 7%…

A: Money has time value and value of money changes with time and interest and inflation. The purchasing…

Q: Ssume you are buying an apartment with $ 500,000. Consider you make 8% per year (i=8%) on this…

A: Capital recovery amount is that amount which should be recovered.

Q: There are three investments being offered to you; one pays you $100,000 at the end of 10 years;…

A: The present value of the investment is calculated byThe investment with the highest present value…

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.