7. An investor just purchased an office building for $100,000. He knows for certain that he can sell the building for $110,000 in five years. Approximately how much does he need to charge in annual rent in order to achieve a 15% annual return on the deal (rounded to the nearest hundred dollars)?

A. $2,500

B. $8,000

C. $20,500

D. $13,500

8.An apartment house has a projected net income of $15,000 per year, and its projected net sales price after five years is $150,000. Considering its risk, you require a 14 annual percent return on this investment. How much would you be willing to pay for it?

A. $99,658.27

B. $23,058.68

C. $129,402

D. $1,248,387.95

9.Jane Ire is offered a real estate investment that promises to pay $80,000 after 5 years. She feels, based on the investments riskiness, that the annual rate of return should be 15 percent, compounded quarterly. What price should she pay for the property?

A. $27,963.20

B. $39,445.80

C. $48,202.10

D. $38,311.39

10. The value of a house today is $98,000. If it has increased in value at 6% per year, what was the value eight years ago?

A. $61,486

B. $63,349

C. $67,320

D. $160,000

11. What will be the value of a $50,000 piece of land in 20 years if it is expected to appreciate at a rate of 5% per year?

A. $112,633.09

B. $100,898.99

C. $132,664.89

D. $123,860.81