Maxxie purchased a tract of land for $30,000. Today, the same land is worth $44,900. 7.3 years have passed if the price of the land has increased at an annual rate of 5.9 percent.
$44,900 =$30,000(1.059)^t
t = 7.03 years
Does the cost of land always rise?
Nowadays, a lot of people view land as an asset that only offers fixed returns after a given amount of time. But unlike the stock market, where gains are simply an educated guess, the value of your land keeps rising over time. And urbanisation is a major factor in that.
Do properties ever lose value?
The IRS claims that land cannot ever be depreciated. Since land cannot be depreciated, the original purchase price must be divided between the building and the land. To calculate a ratio of the worth of the land to the building, utilise the property tax assessor's values.
To know more about land, click here- brainly.com/question/14616571
#SPJ4
