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Could someone show me how to do these questions please. Please show your work that would be awesome. Also if this is too many questions
Could someone show me how to do these questions please. Please show your work that would be awesome. Also if this is too many questions answer what you can!
- A piece of land produces an income that grows by 6% per annum, forever. If this year's income is $1000, what is the value of the land? Interest rate = 7%
- You must pay $10,000 a year in school fees at the end of each of the next six years. How much do you need to set aside today to cover these bills? Interest rate = 7%
- A bank loan requires you to pay $50,000 at the end of each of the next eight years. What is the present value of these payments? Interest rate = 7%
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