1. Your job at a new company has been working out really well and you have decide to purchase a piece of property with a farm house and a barn on the land near your work. The property has a barn where they can raise cows, horses, chickens, sheep and plant spaghetti trees. You have managed to save $40,000 to use as a down payment on the $400,000 price. You negotiate to finance your purchase over 25 years making monthly payments.

2. If the interest rate is 8 percent compounded semi-annually, calculate the value today for the investment in part a. Show your work!

3. Rather than waiting one year to deposit the $1,000, you plan on depositing $250 every 3 month with your first deposit occurring 3 months from now. If interest rates are 8 percent compounded quarterly, what is the value today of these quarterly deposits?

Answer rating: 100% (QA)

Calculating Present Value for Property Purchase To calculate the present value of the property purch... View the full answer