A gentleman bought a limited edition Wolverine figurine in 1974 for $0.15. In 2012, 38 years later, he sold it for $36,900. What return did he earn per year over those 38 years?

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Sheila’s mother purchased 100 shares of Apple stock in 1992. The original sale price was $26 per share for a total value of $2,600. She kept those 100 stocks until her death in June 2022. By the time of her death, the Apple stock value is $190 per share for a total value of $19,000. Sheila will not owe taxes for capital gains on the $16,400 increase in value. Why do you think the gains and losses should be separated from sheila's other gains and losses?

Martha bought a home in 1988 at a cost of $100,000.00. She put 20% down and financed the remainder by way of a mortgage. She paid the mortgage off in 20 years. Over the years, she spent $45,000 improving and updating the house. Martha sold her home last year for $310,000.00 What was the value of Martha's equity in her home?

In 1974, your father purchased a rare art item for $10,000. In 2010, you sold it for $5 million. What annual rate of return did you earn on your father’s purchase? A. 17.77% B. 16.81% C. 20.06% D. 21.43% E. 23.02% F. 18.84%

Larry purchased an annuity from an insurance company that promises to pay him $9,000 per month for the rest of his life. Larry paid $946,080 for the annuity. Larry is in good health, and he is 72 years old. Larry received the first annuity payment of $9,000 this month. Use the expected number of payments in Exhibit 5-1 for this problem. a. How much of the first payment should Larry include in gross income? b. If Larry lives more than 15 years after purchasing the annuity, how much of each additional payment should he include in gross income? c. What are the tax consequences if Larry dies just after he receives the 100th payment?

ind the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $700 per year for 10 years at 8%. $   $350 per year for 5 years at 4%. $   $800 per year for 10 years at 0%. $   Rework previous parts assuming they are annuities due. Present value of $700 per year for 10 years at 8%: $   Present value of $350 per year for 5 years at 4%: $   Present value of $800 per year for 10 years at 0%: $

Kirk Van Houten, who has been married for 23 years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the cost of the ring will be $10 comma 000 in 7 years. Kirk currently has $4 comma 524 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?