part b. is a stinking fund

Question 5. (6 pts total) You want to purchase a ranch after you retire. Let's assume you expect to purchase a ranch that today costs $700,000. You expect the value of the ranch to increase by 1.5% annually for the next 30 years. a. How much do you expect the land to be worth in the future? In other words, a single value of $700,000 will be worth what in 30 years? 3 pts b. You found an investment account that earns 9% annual interest, and it is compounded monthly. How much money would you have to put into the account every month in order to purchase the ranch in 30 years? In other words, what is the payment on a sinking fund for how much you expect the ranch to cost in 30 years (calculated in part a), assuming a 9% annual interest rate compounded monthly. 3 pts