You have just purchased a farm for $2,000 per acre. Land is expected to increase in...

Transcribed Image Text:

You have just purchased a farm for $2,000 per acre. Land is expected to increase in value at a rate of 6 percent annually. Using Excel, make a table similar to the one below (your table should have all the years unlike my example) to answer the following four questions A. What will an acre of land be worth in 5 years? B. What will an acre of land be worth in 20 years? Value at beginning ofinterest ratelnterest earnedValue at end (%) ($) Year of year ($) year 1 3 4 5 20 You have just purchased a farm for $2,000 per acre. Land is expected to increase in value at a rate of 6 percent annually. Using Excel, make a table similar to the one below (your table should have all the years unlike my example) to answer the following four questions A. What will an acre of land be worth in 5 years? B. What will an acre of land be worth in 20 years? Value at beginning ofinterest ratelnterest earnedValue at end (%) ($) Year of year ($) year 1 3 4 5 20

Answer rating: 100% (QA)

Year Value at beginning of year Interest rate Interest earned Value ... View the full answer