Economy, asked by adit2201, 1 day ago

please answer within half an hour

Suppose a piece land has a value in t years from now given by V (t) = 2^ √ t . The current interest is r. (a) What is the present value of the piece of land?
(b) When do you recommend the best time for the owner to sell the land?
(c) How do you know your answer to part (b) is the actual best time to sell the land? Explain
(d) Show how your answer to part (b) changes when the value of interest r changes.​

Answers

Answered by Divyanshu2610
1

Answer:

4. Suppose a piece land has a value in t years from now given by V(t) = 2Vt. The current interest is r. (a) What is the present value of the piece of land? (1) (b) When do you recommend the best time for the owner to sell the land? (2) (c) How do you know your answer to part (b) is the actual best time to sell the land? Explain (2) (d) Show how your answer to part (b) changes when the value of interest r changes. (2)

Answered by AngelAnnaMonson
0

Explanation:

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Suppose a piece land has a value in t years from now given by V(t) = 2Vt. The current interest is r. (a) What is the present value of the piece of land? (1) (b) When do you recommend the best time for the owner to sell the land? (2) (c) How do you know your answer to part (b) is the actual best time to sell the land? Explain (2) (d) Show how your answer to part (b) changes when the value of interest r changes.

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