Answered: You purchased a piece of property for…

You purchased a piece of property for $30, 000 nine years ago and sold it today for $ 83,190. What was the rate of return on your investment?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 2P

See similar textbooks

Related questions

Q: A municipal engineer is evaluating two alternatives for adding capacity to the water supply system…

A: Capitalized cost is the present value of all cost including the initial cost and annual cost of…

Q: Explain what is meant by “initial margin” on a futures contract

A: A futures contract is a type of common financial agreement that specifies a future date and price at…

Q: The Hudson Corporation makes an investment of $38,250 that provides the following cash flow: Cash…

A: Net present is the difference between presentt value of all cash inflow and initial investment. NPV…

Q: Assume you need TSh. 40 million net to fund a small income - generating project. Two institutions…

A: (a) Based on Fees Alone:Comparing fees:Institution A: Processing fee (3.0%) + Insurance fee (1.8%) =…

Q: Liabilities What is the reason for having a market for liabilities? Please Explain. Or give…

A: A market for liabilities exists to facilitate the trading and exchange of debt instruments or…

Q: You borrow $149,000 to buy a house. The mortgage rate is 7.5% and the loan period is 30 years.…

A: ($1,041.83 x 30 x 12) - $149,000 = $226,059 answer

Q: Sunshine Corporation is contemplating issuance of a 10% preferred stock that they expect to sell for…

A: Cost of stock refers to an expense that are being charged over the investment amount for buying the…

Q: .A grocery store receive the package of 950 kiwis .some of the kiwis are arranged equally in 33…

A: The following information is given in the question:- Total number of kiwis = 950Number of boxes =…

Q: If i deposit $1,884 per year into a savings account earning 2% interest per year, how much will i…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Omni Technology Holding Company has the following three affiliates: Sales Net income (after taxes)…

A: Return on sales is the proportion of net income to the sales. So,Return on Sales (%) = (Net Income /…

Q: You are evaluating purchasing the rights to a project that will generate after tax expected…

A: The Net Present Value (NPV) of a project is calculated by discounting the expected cash flows at the…

Q: 2. A loan is being repaid with 25 annual payments of 300 each. With the 10th payment, the borrower…

A: The annuity of the revised or balanced amount can be determined by using the PMT formula function in…

Q: Top Corporation has ending inventory of $468,200, and cost of goods sold for the just ended was…

A: Cost of goods sold=$3815830Average inventory=$468200Calculate inventory turnover ratio.

Q: File Preview FNCE 3484-HW1 Be sure to include all of your names + Group # on the first page of your…

A: The objective of this question is to calculate the beta of a portfolio comprised of Facebook, Inc.…

Q: Consider the performance of a stock fund, a bond fund, and Treasury bills. Measurement Mean Standard…

A: The optimal risky portfolio, in the context of portfolio theory and modern portfolio theory (MPT),…

Q: 1. Suppose a commercial bank wants to buy Treasury bills. If you know that these instruments pay…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Today, the stock price of Genevo Co. (based in Switzerland) is priced at SF70 per share. The spot…

A: American Depository receipt(ADR) are financial institute give rights to U.S. investors to trade in…

Q: Lofting Snodbury is considering investing in a new boring machine. It costs $ 419,000 and is…

A: The objective of the question is to calculate the Net Present Value (NPV) of the investment in a new…

Q: Suppose you deposit $1,181.00 into an account 5.00 years from today. Exactly 18.00 years from today…

A: Amount Deposited 5 years from today = $1,181Worth of Account 18 years from today = $1,800Time…

Q: Note: Please show all working out and all steps, including the formuals used (e. g. price earnings…

A: Stock price refers to the current value at which shares of a company's stock are being traded on the…

Q: What is the amount of double declining balance depreciation for year 4 if the cost of an asset is…

A: The objective of this question is to calculate the amount of double declining balance depreciation…

Q: An American call option expiring in 3 - years has an exercise price of E1,500.00 on the Eswatini…

A: Stock price=E1940Exercise price=E1500Rise factor=1.1 and down factor=0.80Risk free rate=6%

Q: Which Federal Law established that all newly issued security offerings traded on national exchanges…

A: Securities regulation is a crucial aspect of the financial markets, ensuring transparency and…

Q: What price will the bond sell for assuming that the 15 year yield to maturity in the market is 4%,…

A: A bond's price is determined by the bond's future cash flows, which include periodic interest…

Q: ¤ 5 |]][[||||||| ]]|||||||| |||||||||||| |||||||||||| |[|]|||||[[|]] [|]||||||||| ||||||||||…

A: Computation of Net Income For The Month Ended May 31Journal Entries in the books of Tamarisk,…

Q: 5. An investor is considering an investment that will pay $2,150 at the end of each year for the…

A: Payment = p = $2150Time = t = 10Interest Rate = r = 18%

Q: a pension fund is making an investment of $100,000 today and expects to receive $1,600 at the end of…

A: The internal rate of return is a financial metric use to assess the profitabilityof an investment…

Q: Suppose a furniture dealer offers to sell you a $5,000 bedroom suite on the following terms: Make no…

A: Formula used :APR is the rate charged on an yearly basis by the lender or borrowee.

Q: After deciding to get a new car, you can either lease the car or purchase it with a three-year loan.…

A: A loan is a financial instrument that involves the lending of money by one or more individuals,…

Q: Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her…

A: Variables in the question:FV=$2.3 millionN=30 yearsRate=5% (compounded annually)

Q: The following information available from Petra+ Corporation: ROA Tax rate Total assets (include only…

A: The ROCE for a company implies a profitability measure that uses the after tax operating income and…

Q: You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company…

A: Net Income: $5,000,000Depreciation: $450,000Property, Plant, and Equipment Purchase:…

Q: Abosky ltd, is a new firm, and has the opportunity to invest in its first new project. The new…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: . Your existing business generates $75,000 in EBIT. • The corporate tax rate applicable to your…

A: An essential financial statistic called free cash flow (FCF) assesses a company's capacity to make…

Q: A firm's current profits are $800,000. These profits are expected to grow indefinitely at a constant…

A: The value of a firm can be determined by calculating the perpetual cost of current year profit after…

Q: Your grandmother has been putting $2,000 into a savings account on every birthday since your first…

A: Future value of ordinary annuity is the total value of all accumulated annuity payments at a future…

Q: Options were granted on January 1, 2023by Paltel Co. to purchase 15,000 common shares at an exercise…

A: Incremental shares are the shares that are to be calculated by deducting the shares that are…

Q: When you purchased your house, you took out a 30-year mortgage with an interest rate of 4.8% per…

A: The entire amount needed to fully satisfy a debt or other financial obligation is called the payoff…

Q: In the most recent fiscal year, a company reported net income of $920 million after incurring S 320…

A: Firm valuation is a process where the worthiness of the company is identified is revealed based on…

Q: Write me a human paragraph without using Al about what a memorandoms of understanding is and how it…

A: A Memorandum of Understanding (MoU) is a formal agreement between two or more parties. It is not…

Q: Applebee sold an issue of 15 - year, $1,000 par value bonds to the public. The coupon rate of 8.5%…

A: Bonds are debt instruments issued by companies. The issuing company pays periodic interest or…

Q: Nobility Homes, Incorporated, is a small maker of manufactured homes sold throughout the state of…

A: One financial statistic that's used to evaluate a company's ability to grow over the long term…

Q: You are considering buying a car (sticker price of $43,000) but need financing. The car dealership…

A: We take loans to buy large ticket items like a car or a house. The loans that we take are repaid by…

Q: 6. Fund A Fund B Expected Ret. E(r) 13.4 % . 10.8% Standard Deviation - 13 %. 15.8% The table above…

A: The objective of the question is to calculate the weight of Fund A in a minimum-variance two-risky…

Q: The assets of Dallas & Associates consist entirely of current assets and net plant and equipment,…

A: Total debt = Total assets - Total Equity = $ 2400000 - 1450000= $ 950,000

Q: The value of firm is equal to value of debt plus value of equity. Assume the firm has 4 million…

A: The value of firm is a financial term refers to the total worth as estimated by the market or…

Q: Consider the following information. In order to satisfy a sharp increase in demand due to the end of…

A: Capital budgeting is a financial planning process used by companies to evaluate and select long-term…

Q: APJ, Inc. is planning to purchase a new machine that will take six years to recover the cost. The…

A: The payback period is a financial metric used to evaluate the time it takes for an investment to…

Q: An insurance company found that 2.5% of male drivers between the ages of 18 and 25 are involved in…

A: An insurance policy is an contractual agreement between the policyholder and insurance company,…

Q: You are considering buying a car (sticker price of $43,000) but need financing. The car dealership…

A: A loan refers to a contract between two parties where money is forwarded by one party to the other…

Question

You purchased a piece of
property for $30, 000 nine years
ago and sold it today for $
83,190. What was the rate of
return on your investment?
12% 11% 9% 10%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: introduction The annual rate of return

VIEW

Step 2: calculation to the below given details

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%
How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
How much would you invest today in order to receive $30,000 in each of the following (for further instructions on present value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
You bought a painting 9 years ago as an investment. You originally paid $163,000 for it. If you sold it for $510,000, what is your annual return on the investment? Assume annual compounding. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%)
An investment is now worth 46,200. You bought this investment 15 years ago for $5,000. What return did you earn in this investment?
You purchased a piece of property for $30,000 nine years ago and sold it for $83,190. What was the annual rate of return on your investment?
Twenty years ago, you invested 16,612.70. If you earned a compound annual rate ofreturn of 6.30%, how much is your investment worth today?62,745.7654,218.1860,328.54.56,377.4651,482.69
You just purchased a parcel of land for $40,000. To earn a 9% annual rate of return on your investment, how much must you sell the land for in 3 years? Assume annual compounding. (Round to nearest penny, e.g. 1234.56)
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.
Suppose you inherited $1,425,000 and invested it at 7.80% per year. How much could you withdraw at the beginning of each of the next 20 years? a. $142,985.98 b. $132,640.06 c. $135,671.09 d. $111,150.00 e. $29,532.45
You inherited $437, 000 and invested it at 8.25% per year. How much could you withdraw at the beginning of each of the next 20 years? a. $41, 885.14 b. $23, 005.01 c. $35, 889.45 d. $45, 678.99e. $39,065.21