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show work 10. What is the annual depreciation deduction for an apartment building with a basis of $2,365,000? 11. In 1626, Peter Minuit, the governor
show work 10. What is the annual depreciation deduction for an apartment building with a basis of $2,365,000? 11. In 1626, Peter Minuit, the governor of the Dutch West India Company, bought Manhattan Island from the Native Americans for beads, cloth, and other items worth approximately $24. Today, the land and buildings of Manhattan are worth over $2 trillion. If the Native Americans could have liquidated (sold for cash) the items obtained in the exchange and invested the $24 in a bank account at 6.0 percent annually compounding interest, what would be the value of their $24 investment in 2021? 12. Mr. Ron Negretti obtained an 8 percent, 25-year, monthly payment mortgage loan in the amount of $90,000 in order to purchase a home. How much are his monthly payments? 13. Suppose you have the option to buy a parcel of vacant land. The option is for a 4-year period, and the purchase price is $100,000. You do not intend to exercise the option until the end of the 4-year period, which means you have 4 years to accumulate the $100,000 in cash to buy the land. You estimate you can save $1,800 per month from your salary, which will be deposited in a mutual fund earning 10% per year. Will you have accumulated enough money by the end of the fourth year to purchase the land? 14. Aunt Sarah Sudbury died at age 84, leaving her 10-year-old niece Paige a parcel of land to which she will obtain title on her 21st birthday. At that time, the land is projected to be worth $18,000. Discounting this value at 10 percent, what is the present value of Paige's inheritance
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