Demarcus is planning to purchase a piece of property that he anticipates will cost $455,000 in 6 years. He has recently received a significant bonus and would like to set aside money now to cover the cost of the property. Assuming Demarcus' money will be placed into an account that will earn 7% annually, how much would he need to invest now to be able to purchase the land?

Demarcus is planning to purchase a piece of property that he anticipates will cost $455,000 in 6 years. He has recently received a significant bonus and would like to set aside money now to cover the cost of the property. Assuming Demarcus' money will be placed into an account that will earn 7% annually, how much would he need to invest now to be able to purchase the land?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Demarcus is planning to purchase a piece of property that he anticipates will cost $455,000 in 6 years. He has recently received a
significant bonus and would like to set aside money now to cover the cost of the property. Assuming Demarcus' money will be placed
into an account that will earn 7% annually, how much would he need to invest now to be able to purchase the land?
Click here to access the TVM Factor Table calculator.
Carry all interim calculations to 5 decimal places and then round your fınal answer to a whole number. The tolerance is ±5.

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