Bob bought some land costing $15,390. Today, that same land is valued at $44,817. How long has Bob owned this land if the price of land has been increasing at 5 percent per year? Multiple Choice: 13.87 years 14.56 years 24.09 years 22.94 years 21.91 years

Bob bought some land costing $15,390. Today, that same land is valued at $44,817. How long has Bob owned this land if the price of land has been increasing at 5 percent per year? Multiple Choice: 13.87 years 14.56 years 24.09 years 22.94 years 21.91 years

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter16: Property Transactions: Capital Gains And Losses

Section: Chapter Questions

Problem 37P

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Concept explainers

Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.

Question

Bob bought some land costing $15,390. Today, that same land is valued at $44,817. How long has Bob owned this land if the price of land has been increasing at 5 percent per year?

Multiple Choice:

13.87 years

14.56 years

24.09 years

22.94 years

21.91 years

Expert Solution

Step 1 - Information

Cost of land (P) = $15,390

Value of land today (F) = $44,817

Growth rate (r) = 5%

Period of holding = n

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