You are thinking of buying a six-acre lot for $70,000. The lot will be worth $100,000 in 5 years….

You are thinking of buying a six-acre lot for $70,000. The lot will be worth $100,000 in 5 years….

Question:

Don't use plagiarized sources. Get Your Custom Assignment on
You are thinking of buying a six-acre lot for $70,000. The lot will be worth $100,000 in 5 years….
From as Little as $13/Page

 

Transcribed Image Text:

You are thinking of buying a six-acre lot for $70,000. The lot will be worth $100,000 in 5 years.
(12 total points, 6 point each)
A. Should you buy the lot if i (the interest rate) = 0.05?
B. Should you buy it if i = 0.10?

Expert Answer: