* Your answer is incorrect.The Lahiri family rents a room in their home on Airbnb. They deposit all of the money that they earn into a vacation fund that earns 3%that is compounded annually. Their revenues for five years of their business are shown below.Year$12345Revenue$1,000$850$1,275$1,800$800In year six, they did not rent their room due to extensive remodeling. How much would be in the account at the end of year 6?Click here to access the TVM Factor Table calculator.5,114.36Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ±5.

Revenue for 5 years is provided and future value for all the cash flows will be detemrined. Here,…

Answered: The Lahiri family rents a room in their…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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a mother earned $15000.00 from royalties on her cookbook. She set aside 20% of this for a down payment for a new home. The balance will be used for her son's future education. She invested a portion of the money in a bank certificate of a deposit (cd account) that earns 4% and the remainder in a savings bond that earns 7%. IF the total interest earned after one year is $720.00, how much money was invested at each rate?
Janet and James purchased their personal residence 15 years ago for $412,500. For the current year, they have an $103,125 first mortgage on their home, on which they paid $5,156 in interest. They also have a home equity loan to pay for the children's college tuition secured by their home with a balance throughout the year of $144,250. They paid interest on the home equity loan of $14,425 for the year. Calculate the amount of their deduction for interest paid on qualified residence acquisition debt and qualified home equity debt for the current year. a. Qualified residence acquisition debt interest b. Qualified home equity debt interest
Last year, Thea and Rory Brown bought a home with a dwelling replacement value of $350,000 and insured it (via an HO-5 policy) for $310,000. The policy reimburses actual cash value and has a $500 deductible, standard limits for coverage C items, and no scheduled property. Recently, burglars broke into the house and stole a two-year-old television set with a current replacement value of $600 and an estimated useful life of eight years. They also took jewelry valued at $1,850 and silver flatware valued at $3,000. Make sure to account for depreciation. If the Browns’ policy has an 80 percent co-insurance clause, do they have enough insurance? Assuming a 50 percent coverage C limit, calculate how much the Brown family would receive if they filed a claim for the stolen items. What advice would you give the Brown family about their homeowner’s coverage?
A student saved $3,000 per year from 1986 to 2001 (15 years) in an account with 8% interest. He stopped depositing money after year 2001, but the money was kept in the same account earning interest. In 2007 he withdrew $20,000 for down payment toward purchase of a new house. In 2012 he received an inheritance as a single payment of $50,000, which he deposited in the same account. What is the current balance of the account (2021)?
Ms. Suzanne Morphy is a full time architect. She is also sells vegetables on the side from a small farm she runs in her backyard. In 2018, the first year of operation, she had a loss of $43500 and deducted the maximum allowable amount. What is the amount of her farm loss carryover to future years that can be applied against future farm income?
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Kristian purchased a new home for $200,000. He put down $50,000 in cash and took out a mortgage for the rest. At the time of closing, he also paid $1,000 for title insurance, $500 in recording fees, and the bank required that he place $2,500 in an escrow account for property taxes. What is the basis of the home?
.
Amy earns an income of 50,000 this year as an employee of rooster enterprises. She pays the following amounts during the year: Contribution to Traditional IRA : 5000 PreTax Cuts and Jobs Act Alimony she paid to her ex husband: 10,000 Medical expenses: 6000 What is Amy's Adjusted Gross Income? (AGI) a. 29000 b. 34000 c. 35000 d. 39000
Janet and James purchased their personal residence 15 years ago for $262,500. For the current year, they have an $65,625 first mortgage on their home, on which they paid $3,281 in interest. They also have a home equity loan to pay for the children's college tuition secured by their home with a balance throughout the year of $121,750. They paid interest on the home equity loan of $12,175 for the year. Calculate the amount of their deduction for interest. paid on qualified residence acquisition debt and qualified home equity debt for the current year. It an amount is zero, enter "0". a. Qualified residence acquisition debt interest $ b. Qualified home equity debt interest. $
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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?

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