answer all questions correctly for a like.

Question 1 (0.2 points) You just purchased a parcel of land for $70000. If you expect to earn a 8% annual rate of return on it, how much do you expect to be able to sell it for in 10 years? Your Answer: Answer Hide hint for Question 1 Method 1: Future value of the land= current price *(1+ annual rate of return)^(number of years); Method 2: on your financial calculator N= number of years I/Y= annual rate of return PV= current price of the land PMT-0 CPT (compute) FV Question 2 (0.2 points) What is the future value in $) of cash flows 1-3 at the end of year 3, assuming a 6% interest rate (compounded annually)? End of year Cash flow $500 818 3 820 Your Answer: Answer Hide hint for Question 2 Read the questions carefully, compound cash flows during year 1-3 CF1*1.06^2 +CF21.06 +CF3 Please pay attention to the timing of each cash flow