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Tcecarenko [31]
3 years ago
7

Assume that a piece of land is currently valued at $50,000. If this piece of land is expected to appreciate at an annual rate of

5% per year for the next twenty years, how much will the land be worth twenty years from now?
Business
1 answer:
Luda [366]3 years ago
5 0

Answer:

The correct answer is $132,664.89.

Explanation:

According to the scenario, the given data are as follows:

Present value (PV) = $50,000

Rate of interest (r) = 5%

Time period (n) = 20 Years

So, we can calculate future value by using following formula:

Future value = PV × (1 + r)^(n)

= $50000 × ( 1 + 5% )^20

= $50000 × (1 + 0.05)^20

= $132,664.89

Hence, After 20 years land will be worth $132,664.89.

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Answer and Explanation:

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Reasons other that increase or decrease in price such as demand for the respective product, will lead to shift in demand curve. For example, an increase in the demand for a particular good will increase the demand for labor that will produce the product. An increase in demand for labor in this case will shift the demand curve rightwards and vice versa.

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Conflict of interest .

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Option  E                    

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To learn more about DAW, click here.

brainly.com/question/18338289

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