Ask Question
5 September, 01:59

Suppose a parcel of land promises to return $750 per year per acre. what is the capitalized value of the land if the interest rate is 7%?

0
Answers (1)
  1. 5 September, 02:06
    0
    A capitalized value of land is the value of the land calculated on Total return per year divided by the interest rate.

    The capitalized value of land = Return on land per year : Interest rate

    Where Return on land per year = $750

    Interest Rate = 7%

    The capitalized value of land = $ 750 : 0.07

    = $ 10,714.29

    Therefore, the capitalized value of land if the interest rate is 7% is $ 10,714.29.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose a parcel of land promises to return $750 per year per acre. what is the capitalized value of the land if the interest rate is 7%? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers