Question
Please solve and show each step you use with a financial calculator! 1. An investor originally paid $20,000 for a vacant lot 12 years ago.
Please solve and show each step you use with a financial calculator!
1. An investor originally paid $20,000 for a vacant lot 12 years ago. If the investor is able to sell the lot today for $620,000, what would his annual rate of return be on this investment (rounded to the nearest percent)? Draw your cash flow diagram and show your steps used in financial calculator.
2. An investor just purchased an office building for $150,000. He knows for certain that he can sell the building for $190,000 in 8 years. Approximately how much does he need to charge in annual rent in order to achieve a 13% annual return on the deal (rounded to the nearest hundred dollars)? Draw your cash flow diagram and show your steps used in financial calculator.
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