Michael and Sandy purchased a home for $100,000 five years ago. If it appreciated 6% annually, what is it worth today? Group of answer choices $106,000 $130,000 $133,823 $135,603
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- Carry and her husband Troy are planning to buy their first home this summer. They each of $50,000 in RRSPs saved up ($100,000 total). What would you recommend they use to help purchase their home? What is the maximum amount that each of them can contribute using this option only? Format: positive numbers as 100,000.00, negative numbers as (100,000.00)When you graduate from college, your mother plans to give you a gift of $40,000 to start you on your way. However, to determine what you learned in business school, your mother presents you with four options on how to receive the gift. Which of the four options presented by your mother will yield the greatest present value to you?Present Value of $1 Periods 2% 3% 4% 5% 6% 1 0.980 0.971 0.962 0.952 0.943 2 0.961 0.943 0.925 0.907 0.890 3 0.942 0.915 0.889 0.864 0.840 Present Value of Annuity of $1 Periods 2% 3% 4% 5% 6% 1 0.980 0.971 0.962 0.952 0.943 2 1.942 1.913 1.886 1.859 1.833 3 2.884 2.829 2.775 2.723 2.673 A lump sum of $40,000 today $20,000 per year for the next 2 years using a 4% discount rate A lump sum of $40,000 after grad school (2 years) assuming a 5% discount rate A lump sum of $40,000 after grad school (2 years) assuming a 4% discount rateDave has inherited $7,000 from the death of Grandma Mary. He would like to use this money to buy a baking equipment costing $8,000 3 years from now. Will Dave have enough money to buy the gift if he deposits his money in an account paying 9 percent compounded semi-annually? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Answer
- A couple purchased a home 20 years ago for $200,000. The home was financed by paying 10% down andsigning a 30-year mortgage at 12% compounded monthly on the unpaid balance. The net market value of thehome is now $2,500,000, and the couple wishes to sell the house.(c) How much equity does the couple have in the house after making 24 years of payments?Your Aunt Mary recently found a painting in her closet that she purchased 20 years ago for $500. She found out that the painting is now worth $50,000. What annual rate of return did Aunt Mary earn on this painting? 50.0% 100.0% 25.9% 5.0%a) When you retire 40 years from now, you want to have $1.2 million. You think you can earn an average of 12 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 2 years from today. How much more will you have to deposit as a lump sum if you wait for 2 years before making the deposit? b) Some time ago, Julie purchased eleven acres of land costing $36,900. Today, that land is valued at $214,800. How long has she owned this land if the price of the land has been increasing at 10.5 percent per year?
- London purchased a piece of real estate last year for $83,600. The real estate is now worth $100,100. If London needs to have a total return of 0.22 during the year, then what is the dollar amount of income that she needed to have to reach her objective? Round to two decimal places.Sara bought a car last year for $12,000. She knows the car depreciates in value 10% per year. Will the car be worth more than $5,000 in 10 years? Explain your thinking.Two people plan to invest $50,000. Matt is going to invest it in one lump sum and leave it in the account for 25 years to use for retirement. Sarah is going to invest $2000 per year for 25 years and will also use the money in the account for retirement. Is it reasonable to expect that Matt will have more money in his account than Sarah does in 25 years if both accounts earn the same interest?
- Isabel Lopez from Lewiston, Idaho, who is 19 years old, recently received an inheritance of $55,000 from her grandmother's estate. She plans to use the money for the down payment on a home in ten years when she finishes her education. Right now the funds are in a savings account paying 2.0 percent APY. How much would Isabel have in ten years if instead she purchased a ten-year CD paying 6.0 percent? Round your answer to the nearest dollar.Hello, Can you help me with the below question? Three years ago, Louise bought a rental house for $450,000. Last year, she built a small addition for $50,000. In 2021, she decides to sell the house. She has taken depreciation of $21,000. What is Louise's adjusted basis? a.$450,000 b.$429,000 c.$500,000 d.$479,000Accounting "Gabriella bought a house for $997,000 and paid $179,000 as a down payment. If the interest rate is 10.2% for 15 years, what is the total cost of the house?
