1. With money computed annually at 5%, how long will it take an investment to increase in value from $5,000 to $7,500 ?
2, Assume that you are considering the purchase of land for the location of a new manufacturing facility five years from now. The land can be bought now for $30,000 with taxes at $900 a year and an interest rate of 5%. To justify the purchase price today, the prospective price of the land five years from now should be