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Author Question: Suppose you know a piece of land will be worth 1 million (real) in 2045, and the real interest rate ... (Read 36 times)

jlmhmf

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on: Jul 1, 2018
Suppose you know a piece of land will be worth 1 million (real) in 2045, and the real interest rate is 5. About how much should you be willing to pay for the land today (2015)? (Assume no taxes).
 a. 610,000
  b. 1 million
  c. 1.89 million
  d. 230,000

Question 2

Suppose you know a piece of land will be worth 1 million (real) in 2025, and the real interest rate is 5. About how much should you be willing to pay for the land today (20150)? (Assume no taxes).
 a. 610,000
  b. 1 million
  c. 1.89 million
  d. 230.000


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Qarqy

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Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

a


jlmhmf

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Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it

mcabuhat

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Reply 3 on: Yesterday
Wow, this really help

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