A capitalized value of land is the value of the land calculated on Total return per year divided by the interest rate.
The capitalized value of land = Return on land per year ÷ Interest rate
Where Return on land per year = $750
Interest Rate = 7%
The capitalized value of land = $ 750 ÷ 0.07
= $ 10,714.29
Therefore, the capitalized value of land if the interest rate is 7% is $ 10,714.29.
