
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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some of their money in the stock market, which has been fluctuating over time. The projected value of Mr. Brust's assets after t years is t 3+ 2t 2- 3t + 400. Mr. Kelly's projected assets after t years are t 4- t 2.+ 100.How much did each of them invest?
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- Please no written by hand ) An investor in real estate is expecting to double his income in 10 years what is the appropriate interest rate to accomplish his objective . b) Assume the same investor in real estate given the real interest rate of 6% how many years it will take to triple his income? c) The same investor in the real estate invests 15 millions of dollars and expecting to earn 45 millions of dollars in 10 years what is the minimum interest to accomplish his objective.? d) The same investor in real estate invests in hotels 80 millions of dollars and his expecting to earn 300 million dollars in 15 years with an interest rate of 9% ; Is the investment profitable ? justify yourarrow_forward6.A young person with no initial capital invests k dollars per year at an annual rate of return r. Assume that investments are made continuously and that the return is compounded continuously. a.Determine the sum S(t) accumulated at any time t.arrow_forwardSuppose you purchased a house in San Diego in January of 1994 for $75,000. You then sold that house in December of 2006 for $350,000. Assume that the CPI rose in that period from 107 to 180. What was your total nominal rate of return? How about your annual nominal rate of return? What was your total real return? How about you annual real return?arrow_forward
- You purchased a house for 850,000 cash 4 years ago. You can sell it today for 980,000. What rate of return did you earn on this investement? Round your answer to the nearest tenth of a percent.arrow_forwardSuppose you have $1,500,000 when you retire and want to withdraw an equal amount each year for the next 30 years. - How much can you withdraw each year if you earn 7% - What if you can earn 9%? - What if the market failed and your earnings dropped to -.5%. How long would it take to drain your account if you did nothing about this loss pattern?arrow_forwardAn investment is now worth 46,200. You bought this investment 15 years ago for $5,000. What return did you earn in this investment?arrow_forward
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