nterest rate. In 1972, Bob purchased a new Datsun 240Z for $3,000. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for seven times what he originally paid. What was Bob's annualized rate of retum for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032? Nhat was Bob's annualized rate of return for the 30 years he owned this car? 6.70 % (Round to two decimal places.) If Bob can earn his current rate of retum on his car, what could he sell the car for in 2032? S (Round to the nearest cent.)

nterest rate. In 1972, Bob purchased a new Datsun 240Z for $3,000. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for seven times what he originally paid. What was Bob's annualized rate of retum for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032? Nhat was Bob's annualized rate of return for the 30 years he owned this car? 6.70 % (Round to two decimal places.) If Bob can earn his current rate of retum on his car, what could he sell the car for in 2032? S (Round to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

See similar textbooks

Similar questions

Interest rate. In 1972, Bob purchased a new Datsun 240Z for $3,000. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for six times what he originally paid. What was Bob's annualized rate of return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032?
Interest rate. In 1972, Bob purchased a new Datsun 240Z for $2,500.Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for seventimes what he originally paid. What was Bob's annualized rate of return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032? What was Bob's annualized rate of return for the 30 years he owned this car?
Ten years ago the Jacksons bought a house, taking out a 30 year mortgage for $170,000 at 5.75%. This year (exactly 10 years later) they refinanced the house, taking out a new 30 year mortgage for the remaining balance at 4.375%. What was the monthly payment on the original 5.75% mortgage? What was the remaining balance after 10 years (the amount they then refinanced)? How much interest did they pay during those first 10 years? What is the monthly payment on the refinance 4.375% mortgage? How much interest will they pay over the 30 year term of the refinance? How much total interest will they pay over the full 40 years the Jacksons have a loan for the house? Make sure your work shows how you are solving the problems, but feel free to use your calculator extensively - you don't need to show detailed steps of the formula evaluation.
Sally Seashell bought a lot at the Salty Sea for $50,000 cash. She does not plan to build on the lot, but instead will hold it as an investment for 25 years. She wants a 10% after-tax rate of return after taking the 6% annual inflation rate into account. If income taxes amount to 15% of the capital gain, at what price must she sell the lot at the end of the 10 years?
Ten years ago the Jacksons bought a house, taking out a 30 year mortgage for $160,000 at 5.75%. This year (exactly 10 years later) they refinanced the house, taking out a new 30 year mortgage for the remaining balance at 3.625%. What was the monthly payment on the original 5.75% mortgage? What was the remaining balance after 10 years (the amount they then refinanced)? How much interest did they pay during those first 10 years? What is the monthly payment on the refinance 3.625% mortgage? How much interest will they pay over the 30 year term of the refinance? How much total interest will they pay over the full 40 years the Jacksons have a loan for the house?
Shanice bought the car for $28,430. The value of the car is predicted to depreciate to $13,590 after 5 years. 1. If Shanice keeps the car for an additional 3 years (8 years total), predict the value of the car at the end of those 3 additional years, assuming the value continues decreasing exponentially at the same rate? $ 2. The average maintenance costs on the car are expected to be $350 the year it is purchased and increase by $50 each year after that. Use this to predict the total maintenance costs during the 3 years after the loan is paid off.
Val bought a car for $48,000, putting down $15,000 cash and financing the remainder. How much are his annual car payments if he financed the car for 5 years and paid an annual interest rate of 6 percent? answer is 7,834.08 How much would be his annual payments if he made payments at the beginning of each year? answer is 7,390.64
Patricia finances a $49,100 car with annual payments at a 3.10% interest rate over 8 years, at which time the car will have zero value. If she wants to sell the car in 2 years, how much does she need to sell the car for to break even? a.$6,955 b.$42,145 c.$5,655 d.$51,838 e.$37,925
Your parents purchased their home 15 years ago. At the time, the house cost them $400,000, but they put 15% down on the cost when they bought it. Your parents financed their purchase over 30 years, with 5.0% fixed rate loan, with monthly payments. What is their current balance of their loan?
Linus would like to start saving for his retirement. Starting April 1, 1950, he will make annual deposits into an account, with the last deposit coming on April 1, 1990. Linus assumes he will get pay raises, and plans to increase his deposits by 3.1 percent each year. If he would like to be able to withdraw 44000 dollars per year forever, with the first withdrawal on April 1, 1993, how much will Linus's first deposit need to be? (Assume an interest rate of 4.1 percent effective throughout.)
IN order to buy a new car, X plans to save half of his annual salary of 100,000 at the end of each year for the next 10 years which pays 12% rate interest. How much will be his account after 10 years? • 982,729 • 565,022 • 1,754,874 • 877,436
Your uncle Harry Potter started allotting ₱60000 at the end of each year for 25 years. One year after the saving period is over, your uncle withdrew ₱225000 every year for 5 years. In addition, in the 6th and 7th years, uncle Harry withdrew ₱150000 per year and in the 8th year he chose to withdraw the outstanding amount in his bank account. What was the amount of money he withdrew during the end of the 8th year if the stipulated interest rate is 5%?