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 $48,000 today and another $48,000 in three years. Calculate the total cost of the land today, assuming a discount rate of (a) 4%, (b) 6%, or (c) 8%. 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 $ 48,000 48,000 48,000 Interest Rate 4% 6% 8% Compounding Annually Annually Annually Period Due 3 years - 3 years 3 years Total Cost of Land Today 27

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 $48,000 today and another $48,000 in three years. Calculate the fotal cost of the land today, assuming a discount rate of (a) 4%, (b) 6%, or (c) 8%. Note: Use tables, Excel, or a financial calculator. Do not round your intermediate values. Round your answers to 2 decimal places. (EV of S1, PV of S1, EVA of S1, and PVA of S1)