HW4 Dianna Padilla

HW4 Dianna Padilla - 14-8 50(20) +1000 = $2000 1000(P/A,...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 14-8 50(20) +1000 = $2000 1000(P/A, 2.94%,20) P= 1000 + 50(P/A, 2.94%,20) =1748.02 1000(F/P, 5%,20) = $2653 Rate of Return = approx 2.9% 14-10 P(F/P, I%, 5) 1(1+ .08^5) + 1.47% 1.47(1+.06)^5 =1.97 1.97-1.00 = .97 .97/10 = 9.7% = 14-23 15% of the capital gain: .15(X-18000) = .15X 2700 18000= X (X-18000)(.15)(1.06^10)(P/F , 10%, 10) 18000(F/P , 10%, 10) (F/P, 6%, 10) = 83625.372 83145.335 [.15X 2700] = X (Price after the 10 years) 80919.35 = .85X X = 95,188.1 14-26 .03 +.07 + (.03)(.07) = 10.21% 50,000(P/F,7%,10)(P/F,3%,10) + X(P/A,7%,10) = 100,000 18911.3 + X(P/A,7%,10) =100,000 X(P/A,7%,10) = 81089 X= 12,109 UNIFORM ANNUAL FEE 14-47 165,000 (P/F,i,1) = 165000 165,000 (P/F,i,1) = 167000 167,000 (P/F,i,1) = 172000 172,000 (P/F,i,1) = 180000 180,000 (P/F,i,1) = 183000 YEAR x=1.22 x=3.00 x=4.66 x=1.667 x=3.82 AVG. HOME PRICE INFLATION RATE FOR 5 years Ago (0) 4 years Ago (1) 3 years Ago (2) 2 years Ago (3) Last year (4) This year (5) $165,000 $167,000 $172,000 $180,000 $183,000 $190,000 THAT YEAR (a) 1.22% (b) 3.00% (c) 4.66% (d) 1.667% (e) 3.82% (f) 2.9% f) estimate f 183,000 (P/F,i,1) = 190000 (1.2+3+4.66+1.667+3.8)/5 = 2.9 x=2.9% 14-49 Cost: 85,000 Uniform Benefit = 8000/year Life in years : 45 Single line = B-S / N a) 85000- 5(1500)= 77500 After tax rate of return = 5.2% b) 85000 (F/P , 10%, 5) = 136935 136935 85000 =51,935 rate of return = 14.9 % In year 0 dollars, After tax rate of return = 7.4% ...
View Full Document

Page1 / 2

HW4 Dianna Padilla - 14-8 50(20) +1000 = $2000 1000(P/A,...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online