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6. Peter Piper is offered a real estate investment that will pay $5,000 at the end of each year for the next 10 years. He wants to earn an annual rate of return of 16 percent. How much is he willing to pay for the investment today?

A. $28,429 .14

B. $24,166.14

C. $25,984.14

D. $23,761.14

7. An investor just purchased an office building for $100,000. He knows for certain that he can sell the building for $110,000 in five years. Approximately how much does he need to charge in annual rent in order to achieve a 15% annual return on the deal (rounded to the nearest hundred dollars)?

A. $2,500

B. $8,000

C. $20,500

D. $13,500

8.An apartment house has a projected net income of $15,000 per year, and its projected net sales price after five years is $150,000. Considering its risk, you require a 14 annual percent return on this investment. How much would you be willing to pay for it?

A. $99,658.27

B. $23,058.68

C. $129,402

D. $1,248,387.95

9.Jane Ire is offered a real estate investment that promises to pay $80,000 after 5 years. She feels, based on the investments riskiness, that the annual rate of return should be 15 percent, compounded quarterly. What price should she pay for the property?

A. $27,963.20

B. $39,445.80

C. $48,202.10

D. $38,311.39

10. The value of a house today is $98,000. If it has increased in value at 6% per year, what was the value eight years ago?

A. $61,486

B. $63,349

C. $67,320

D. $160,000

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