menu
bartleby
search
close search
Hit Return to see all results

In 2013 selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $20,000. What was the rate of increase for these automobiles between the two time periods?

Question

In 2013 selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $20,000. What was the rate of increase for these automobiles between the two time periods?

check_circleAnswer
Step 1

Cost in year 2013 = C2013 = $ 16,000

Cost now = Cost in year 2019 = C2019 = $ 20,000

Number of years between 2019 and 2013 = n = 2019 – 2013 = 6 years

Step 2

Hence, the compounded annual rate of increase for these automobiles between the two time periods

=(C2019 / C201...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Finance

Other

Related Finance Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: What are the financial statements?

A: Financial statements:Financial statements are a written record which convey the financial performanc...

question_answer

Q: You are an analyst for a large public pension fund and you have been assigned the task of evaluating...

A: a.Calculate the expected rate of return for Manager Y as follows:

question_answer

Q: The December 31, 2013, balance sheet of Schism, Inc., showed $120,0 00 in the common stock account a...

A: Equity infused upto 2013 = E2013 = Common stock balance2013 + additional paid in surplus account2013...

question_answer

Q: UBTECH Robotics is expected to generate the following free cash flows over the next fiveyears. After...

A: Let Ci be the free cash flow (FCF) for year i.Please note that the question talks about forecast of ...

question_answer

Q: Consider an uneven cash flow stream: Year Cash Flow 0 $2,000 1 $2,000 2 $0 3 $1,500 4 $...

A: Before we get into the solution, let's understand two reciprocal concepts:If present value (PV) is k...

question_answer

Q: Your son has come to you for advice. He is about to enter college and has two options open to him. H...

A: As a first step, let's calculate the NPV of Pharmacy / MBA option making use of the cash flows. We w...

question_answer

Q: A current highway project is estimated to have an average of $1,000,000 in annual maintenance costs ...

A: Calculate the capitalized equivalent of the perpetual annual maintenance costs as follows:

question_answer

Q: a. You are planning for retirement, and would like to have $1,000,000 in the bank when you turn 65. ...

A: Compounding is a concept used in investing. In case of compounding, interest is earned on both the p...

question_answer

Q: Evaluating Annie​ Hegg's Proposed Investment in Atilier Industries Bonds     Annie Hegg has been con...

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...

Sorry about that. What wasn’t helpful?