1. You develop a restaurant property today with a total cost of $ 650,000 and hope to sell it for $ 1,000,000 in eight years. What rate of return will you make solely from the value appreciation return on this investment? Assume annual compounding.
2. Hotel Ashoka will change the landscaping theme of the front lawn in 5 years for which $ 125,000 will be needed. How much must they save each year if they make deposits at year-ends in an account receiving 7% per annum? Assume annual compounding.