Question

You purchase a parcel of land today for $50,000. For how much will you have to sell the property in 15 years to earn a 10 percent annual return on both your initial $50,000 outlay and the expected annual payment of $1,000 for property taxes and insurance?

Answer 1

$240,634.89

Step-by-step explanation:

Calculation for how much will you have to sell the property in 15 years to earn a 10 percent annual return

Using financial calculator to find the Face value

N = 15 years

I = 10%

PV = - 50,000

PMT = - 1000

FV = ??

FV = $240,634.89

Therefore how much will you have to sell the property in 15 years to earn a 10 percent annual return is $240,634.89