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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 85 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

  • Member
  • Posts: 552
Reply 2 on: Jul 1, 2018
Wow, this really help

meow1234

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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