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The next 3 questions are based on the following statement: Property, in the form of...

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Accounting

The next 3 questions are based on the following statement:

Property, in the form of unimproved land, is purchased at a cost of $8,000 and is held for six years when it is sold for $32,600. An average of $220 each year is paid in property tax and may be treated at an interest of 10%. The long-term capital gain tax is 15%. Inflation during the period is treated as 7% per year. Using the FW analysis for the problem should be your approaching way for solving this problem.

First, the actual tax for this property is $_____________ (just entering the number).

The net profit using FW analysis would be $__________________ (just entering the number).

The annual rate of return (that is, the effective annual interest) for this investment is _______________%

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