Suppose you bought a house for $3,250,000 to make it a nursing home in the future. But you have not committed to the project and will decide in nine years whether to go forward with it or sell off the house. If real estate values increase annually at 1.5%, how much can you expect to sell the house for in nine years if it chooses not to proceed with the nursing home project? FV = PV (1 + i)ⁿ Present Value (PV) 3250000 Interest Rate (i) 0.015 Number of years (n) 9 Answer- Refer to the Solved Example 2 on Page 49 of your text.