# HW4 Dianna Padilla - 14-8 50(20 1000 = \$2000 1000(P/A...

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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% ...
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HW4 Dianna Padilla - 14-8 50(20 1000 = \$2000 1000(P/A...

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