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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 74 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
Wow, this really help

tkempin

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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