# Question: a suppose that you invest 10000 each year for 10...

###### Question details

a. Suppose that you invest $10000 each year for 10 years and that you expect to earn an interest rate of 5%? How much money should you have in 30 years? Show all work.

b. Diane is considering the purchase of a lease that will allow
him to operate a restaurant at the mall for a period of **3
years.** The lease will cost $22,000
**annually** along with **monthly operation
costs** of 6,000. She anticipates **monthly
revenues** of $20,000. Calculate the PV of the
**expected profits** of the investment? Assume i =
0.043.

Note: You need to get ** annual** profit
and then calculate PV.