Exercise 10-2 (15 minutes)
Cost of land
Purchase price for land .
Purchase price for old building .
Demolition costs for old building .
Costs to fill and level lot .
Total cost of land.
$ 280,000
110,000
33,500
47,000
$ 470,500
Cost of new building and la
Exercise B-6 (15 minutes)
In Table B.2, where n = 9 and i = 7%, the f = 1.8385.
Future value of investment = $163,170 x 1.8385 = $299,988
Exercise B-9 (10 minutes)
Interest rate per period = 12% annual / 12 months per year = 1% per month
Using Table B.3,
Exercise 11-4 (30 minutes)
1.
Maturity date = November 1 + 90 days = January 30, 2016.
2.
Principal .
x Interest rate .
x Fraction of year (Nov. 1 Dec. 31) .
Total interest in 2015 .
$200,000
9%
60/360
$ 3,000
3.
Principal .
x Interest rate .
x Fraction o