Please help with my construction manegment hw question. QUESTION 1 Your rich unc

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Please help with my construction manegment hw question.

QUESTION 1 Your rich uncle sold his land in California to an investor for $0.80 per acre in 1991. The average value of an acre at this location in 2016 is $12,000. What annual compounded percentage increase in the value of an acre of his land has been experienced? 0 A 0.448% O B. 0.456% ° C. 0.469% OD, 0.493% OE, 0.904% QUESTION 2 A $24,000 student-loan debt was placed at the end of Peter's college career with the interest rate of 1% per month. How many months will it take for Peter to repay his entire loan if monthly payments on this loan are S533.87? A. 16 months B. 20 months ° C. 40 months D. 60 months

Explanation / Answer

1)

annual rate=((current value/value in past)^(1/n))-1

=((12000/0.80)^(1/25))-1

=0.469 is answer (option C)

the above is answer..

2)

use excel function=NPER(rate,pmt,pv,fv)

number of months=NPER(1%,533.87,-24000,0)

=60 months

the above is answer..

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