Lydia bought a rental house for $500,000. She rented it for 5 years at $2,700/month. At the end of the 5th year, she sold it for $550,000. Assume no other cash flows. What was her average annual rate of return on this investment?
Q: Bing gave $800 to her cousin. As a token of gratitude, her cousin gave her $1, 520 at the end of the…
A: Details given are : Present value = $800 Future value = $1520 Time period = 1 year From above…
Q: Carol Jones, a single person, has an annual income of $32,200. The principal and interest payment on…
A: SolutionGiven thatAnnual income of carlo jones=$32,000Loan amount =$25000 30 year at 8%Annual…
Q: Mary Kate and Ashley discover they have $40,000 from their Full House days that they haven't used.…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: Laura’s grandparents helped her purchase a small self-serve laundry business to make extra money…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Tyrone invested a sum of money 10 years ago in an account that paid 2.25% per year compounded…
A: Answer - Formula for Future Value Calculation = FV = Principal / ( 1+i ) t Therefore, Formula…
Q: Tim purchased a bounce house one year ago for $6,500. During the year it generated $4,000 in cash…
A: Given details are : Purchase price of house = $6500 Cash flow during the year form the house = $4000…
Q: . M acquired a small lot in a subdivision, paying P20,000 down and pledge to pay P1,500 every 3…
A: Here, Down Payment is P20,000 Quarterly Payment (PMT) is P1,500 Time Period (n) is 10 years Interest…
Q: ate herself in that area before making any major decisions. She has a short-term investment for that…
A: The more is compounding the more is effective interest rate and less is compounding less is…
Q: Timothy invests $5,000 at 17% interest compounded daily for three years. How much does he have in…
A: Future value = Present value(1 + Rate)^Time
Q: Joshua is saving up to buy a house. He invested $10000 at 3.5% per year, compounded quarterly. He…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: London purchased a piece of real estate last year for $83,600. The real estate is now worth…
A: Purchase price=$83,600 Present worth=$100,100 Rate of return=0.22 ⇒Total Return=(Present…
Q: Kate invested $1,200 4 years ago at 7% per year for 7 years. 2 years ago, she invested $2,000 at…
A: Here, Details of First Investment are as follows: Investment Amount is $1,200 Investment made 4…
Q: In four years of employment, John was able to save P250,000 after he had invested on purchasing a…
A: The stock market is a location where traders may purchase and sell equities,investors can invest in…
Q: Jill invested $1,000 each year into an account that earns 10% interest compounded annually to have…
A: The future value is the future worth of the amount that will be paid or received in the future.
Q: Jino sold his house. In addition to cash, he took a mortgage on the house. The mortgage will be paid…
A: Present value is also known as a present discounted value, in which the future value of cash inflows…
Q: » In 1980 a couple invested 10,000 for 5 years at the rate of 16% annually. During that time the…
A: This question is based on the concept of real value of money which is i.e. what is the value of our…
Q: If Bob and Judy combine their savings of $1,000 and $800,respectively, and deposit this amount into…
A:
Q: Katie recently retired and met with her financial planner. She arranged to receive $40,000 the first…
A: Solution-a1=$40,000a2=$40,000+$210 =$40,210
Q: Morgan opened an RRSP account and deposited $2,800.00 into it. She then deposited $900.00 at the end…
A: Deposit at year-0 = $ 2800 Deposit at year-1 = $ 900 Deposit at year-2 = $ 575 Interest rate = 2.20%…
Q: Julie deposited some money in a savings account this morning. Her money will earn 5 percent…
A: Computation:
Q: Jasmine invested a certain amount in a bank compounded semi-anually. The bank told her that the…
A: First we need to calculate the interest rate. Given, Amount will be doubled in 5 years and it is…
Q: deem invested $800 in an account that pays 4.25% interest compounded annually. Assuming no deposits…
A: Future value of money includes the original deposit and compound interest on the money.
Q: Rhonda has saved $1,200,000 in an account. Her goal is to have 1,500,000 saved up to use as down…
A: given, pv = $1200,000 n=5 r=2.5%
Q: January 2001, Bianca invested $5,000 for three years at 4.20%; in January 2010, she invested $5,000…
A: This question is related to investing. The investor invests money in many investments. These types…
Q: Joe and Sue invested $2,000 at Bank America in 2005, at 6% compounded quarterly. In the year 2010…
A: Given, Investment Amount = $2000 Interest rate (r) = 6% compounded quarterly Formula used compound…
Q: awn invests $2000 each year of 10 consecutive years, starting at age 25. Assume an 8% annual rate of…
A: Here, Annual Payments is $2,000 Time Duration of Investment is 10 years Interest Rate is 8%
Q: Ronnie invests $55,000 in a food truck (which has a lifespan of two years) , the net cash flows of…
A: In order to find net present value, subtract the present worth of cash outflows (or initial…
Q: 1. To save for their new child's college education, a couple places $28,400 in an account. What…
A: Present value of a future amount With periodic compounded interest rate (i), period (n) and future…
Q: She arranged to receive $45,000 the first year. Because of inflation each year she will get $580…
A: A regular payment received by retired people is called pension. Inflation is the increase in general…
Q: Phyllis invested $9,000, a portion earning a simple interes
A: Phyllis invested $9,000, a portion earning a simple interest rate of 4.5 1 2 % per year…
Q: Mercy receives the following cash flow from her rich uncle every year and she wants you to help her…
A: Definition of Present value of money: The money having today on hand has more value than having in…
Q: Phyllis invested $7,500, a portion earning a simple interest rate of 4 1/5 % per year and the rest…
A: Simple Interest = Investment * Rate * Period
Q: Meagan invests $1,200 each year in an IRA for 12 years in an account that earned 5% compounded…
A: The amount deposited each year = $1200 Interest Rate = 5% Compounded annually Years = 12 1st We need…
Q: her new house. She can repay the loan in either of the two ways described below. (a) Five equal…
A: Inputs Borrowing Amount or Loan Amount = 5000
Q: Ali spent $850,000 to buy an apartment building. After deducting all operatingexpenses, real estate…
A: ARR refers to the average rate of return. It means that rate of return which will be generated from…
Q: Bruno deposited $7,500 into an investment account and seven years later, the balance in the account…
A: The rate of return earned on the account can be computed by using the concept of time value of money
Q: Phyllis invested 49000 dollars, a portion earning a simple interest rate of 4 percent per year and…
A: Given, Amount invested is $49000 Interest earned on both the investments is $2320
Q: At the beginning of the year, Holly had a Net Worth of $80,000. As of January 2022, she set aside…
A: Net worth is the net wealth owned by an individual or organization and can be determined using…
Q: oney for her two years old child education in the amount of fifty thousand pesos at the rate of 10…
A: Given information : Current age of kid 2 Initial investment made 50000 Interest rate 10.50%…
Q: Peter and Amy Chambers have saved $4,500. They are accumulating funds for a down payment on a…
A: If investment gives Simple Interest: Amount after 5 years = Principal + Interest for 5 years = 4500…
Q: wed ₱24,480 from Marie at the rate of 10% simple interest per year. She then returned the money…
A: Given, Borrowed amount = 24,480 Interest rate = 10% No. of years = 4 years 6 months or 4.5 years…
Q: Alice Adams invests $3,000 at 9% compounded semiannually for 8 years. a)How much will she have after…
A: Investment amount (PV) = $3000 Annual interest rate = 9% Semi annual interest rate (r) = 9%/2 = 4.5%…
Q: London purchased a piece of real estate last year for $84,500. The real estate is now worth…
A: Income = Investment * ( 1 + total return )
Q: Last year, Charlie had $30,000 to invest. He invested some of it in an account that paid 10% simple…
A: Simple interest is one of the methods of calculating interest in which interest is calculated only…
Q: Will the car be worth more than $5,000 in 10 years?
A: Written Down Value method of depreciation applies a constant rate of depreciation to the net book…
Q: Jennie invested a certain amount in a bank compounded semi-anually.The bank told her that the…
A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount invested is…
Step by step
Solved in 2 steps
- Five years ago, Teresa purchased an investment property for $189,795. He sold it today for $249,999. Based on this information, what was her annualized rate of return? 5.66% 7.59% 6.18% 5.75%Bing gave $800 to her cousin. As a token of gratitude, her cousin gave her $1, 520 at the end of the year instead of $800. If she looks at this as an investment, what is the annual rate of return?Phyllis invested $9,000, a portion earning a simple interest rate of 4 1 2 % per year and the rest earning a rate of 4% per year. After one year the total interest earned on these investments was $400.00. How much money did she invest at each rate?
- Jennie invested a certain amount in a bank compounded semi-anually.The bank told her that the investment is expected to be doubled after 5 years. Approximately, how much will she gain from the investment after 3 years?Kate invested $1,200 4 years ago at 7% per year for 7 years. 2 years ago, she invested $2,000 at 6.3% for 5 years. If she needs $23,000 12 years from today, then what expected return must she obtain when she reinvests the proceeds from her two previous investments. Assume that she reinvests as soon as the money is received.Your sister just deposited $5,000 Into an investment account. She belleves that she will earn an annual return of 8.7 percent for the next 5 years. You believe that you will only be able to earn an annual return of 7.8 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 5 years?
- Lisa invested $5000 in a fund for 5 years and was paid simple interest. The total interest that she received on the investment was $1000. As a percentage, what was the annual interest rate of her investment? If necessary, refer to the list of financial formulas.Phyllis invested $7,500, a portion earning a simple interest rate of 4 1/5 % per year and the rest earning a rate of 4% per year. After one year the total interest earned on these investments was $312.00. How much money did she invest at each rate? at 4 1/5 % per year $ at 4 % per year $Dawn invests $2000 each year of 10 consecutive years, starting at age 25. Assume an 8% annual rate of return with annual compounding. After age 35 she no longer adds to the account, but the money continues to compound. What was Dawn's out of pocket amount? How much will Dawn have accumulated by age 65?
- One year ago, Irlene purchased some bonds at a value of $2,876 and received two semi- annual interest payments of $76.60 each. Today the bonds are valued at $2,784.50. What is Irlene's income yield? What is Irlene's capital gain yield? What is Irlene's investment total rate of return?Your grandma invested some money 58 years ago into an account earning 2.5 % per year, compounded quarterly. She now has $17,598 in her account. How much interest did she earn on the investment? (Round to the dollar and do not include the $ sign in your answer just give the number only) Your grandma invested some money 58 years ago into an account earning 2.5 % per year, compounded quarterly. She now has $17,598 in her account. How much interest did she earn on the investment? (Round to the dollar and do not include the $ sign in your answer just give the number only)Yoko invested s4000 in a fund for 2 years and was paid simple interest. The total interest that she received on the investment was $400. As a percentage, 00 what was the annual interest rate of her investment? If necessary, refer to the list of financial formulas.