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Nataliya [291]
3 years ago
10

Capital Value Find the capital values of the properties in Exercise.

Mathematics
1 answer:
Ratling [72]3 years ago
5 0

Answer:

P = $ 211,897

Step-by-step explanation:

Given data:

annual rent of $225,000

interest rate 6% = 0.06

compounded yearly = t =1 yr

total amount ic calculated as A =Pe^{rt}

where P is capital value

plugging all value to get capital value

225000 = p e^{0.06\times 1}

P = \frac{225000}{e^{0.06}} = 211,897

P = $ 211,897

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