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 $37,000 today and another $37,000 in three years. Calculate the total cost of the land today, assuming a discount rate of (a) 6%, (b) 8%, or (c) 10%. Note: Use tables, Excel, or a financial calculator. Do not round your intermediate values. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1) a. b. C. Payment Amount $ 37,000 37,000 37,000 Interest Rate Compounding 6% Annually 8% Annually Annually 10% Period Due 3 years 3 years 3 years Prev Total Cost of Land Today 1 of 4 www Next >

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 $37,000 today and another $37,000 in three years. Calculate the total cost of the land today, assuming a discount rate of (a) 6%, (b) 8%, or (c) 10%. Note: Use tables, Excel, or a financial calculator. Do not round your intermediate values. Round your answers to 2 decimal places. (FV of \$1. PV of \$1. FVA of \$1, and PVA of $1 )