Future

value.

A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of

$7,600

for

11

years. The loan rate is

5%.

At the end of

11

years, he believes that he can sell the land for

$110,000.

If he is correct on the future price, did he make a wise investment?

What is the future value of the loan

11

years from now?

$nothing

(Round to the nearest cent.)