6. If you purchase a parcel of land today for $20,000, and you expect it to appreciate 13 percent per year in value, how much will your land be worth 10 years from now?
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
A=$20000*(1.13)^10
=$20000*3.39456739
=$67891.35(Approx).
6. If you purchase a parcel of land today for $20,000, and you expect it to...