You have entered into an agreement for the purchase of land. The agreement specifies that you will take ownership of the land immediately. You have agreed to pay $35,000 today and another $35,000 in three years. Calculate the total cost of the land today, assuming a discount rate of (a) 3%, (b) 5%, or (c) 7%. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) a. b. C. Payment Amount $ 35,000 35,000 35,000 Interest Rate Compounding 3% Annually Annually 5% 7% Annually Period Due 3 years 3 years 3 years Total Cost of Land Today

You have entered into an agreement for the purchase of land. The agreement specifies that you will take ownership of the land immediately. You have agreed to pay $35,000 today and another $35,000 in three years. Calculate the total cost of the land today, assuming a discount rate of (a) 3%, (b) 5%, or (c) 7%. (FV of \$1, PV of \$1, FVA of \$1, and PVA of \$1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.)