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What is the value of the land

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Could someone show me how to do these questions please. Please show your work that would be awesome. Also if this is too many questions answer what you can!

  1. A piece of land produces an income that grows by 6% per annum, forever. If this year's income is $1000, what is the value of the land? Interest rate = 7%
  2. You must pay $10,000 a year in school fees at the end of each of the next six years. How much do you need to set aside today to cover these bills? Interest rate = 7%
  3. A bank loan requires you to pay $50,000 at the end of each of the next eight years. What is the present value of these payments? Interest rate = 7%

Reference no: EM133253214

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