Question: Future- question 14 value . A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of

Future- question 14

value.

A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of

$7,200

for

years. The loan rate is

6%.

At the end of

years, he believes that he can sell the land for

$100,000.

If he is correct on the future price, did he make a wise investment?

Question content area top

Part 1

Future

value.

A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of

$7,200

for

years. The loan rate is

6%.

At the end of

years, he believes that he can sell the land for

$100,000.

If he is correct on the future price, did he make a wise investment?

Question content area bottom

Part 1

What is the future value of the loan

years from now?

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