You buy a house for 220,000 in a neighborhood where home prices have risen 5% annually on
Question:
You buy a house for 220,000 in a neighborhood where home prices have risen 5% annually on average. You suspect that growth in home prices will slow to an average of 3.5% per a year over the next five years. If your growth estimate growth is correct, how much less will your house be worth in five years compared with 5% growth?
a. $3,300.00
b. $16,500.00
c. $19,490.95
d. $13,870.51
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (7 reviews)
ANS C PV 220000 N 5 lY...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Question Posted:
Students also viewed these Cost Accounting questions
-
Suppose you buy a house for $150,000. One year later, the market price of the house has risen to $165,000. What is the return on your investment in the house if you made a down payment of 20 percent...
-
Ben Collins plans to buy a house for $220,000. If that real estate property is expected to increase in value 3 percent each year, what would its approximate value be seven years from now?
-
Ben Collins plans to buy a house for $220,000. If the real estate in his area is expected to increase in value by 2 percent each year, what will its approximate value be seven years from now?
-
a) which ionization gives the best sensitivity the analysis of chloramphenicol? b) The compound with highest retention factor? c) What is the resolution between yohimbine and chloramphenicol? d) What...
-
Sam Bowyer believes there are no significant differences in the flow of costs between job order cost accounting and process cost accounting. Is Bowyer correct? Explain.
-
Orange Electronics has been experiencing declining profit margins and has been looking for ways to increase operating income. It cannot raise selling prices for fear of losing business to its...
-
Which inventory costing method assigns the newest, most recent, costs incurred during the period to ending inventory? a. Specific-unit cost b. First-in, first-out (FIFO) C. Last-in, first-out (LIFO)...
-
An investor, wants to know how two portfolios are performing in the market: 7% Y (3%) 12% Probability Market portfolio 0.40 0.20 15% 0.40 Beta factor 10% 18% Portfolio X 1.30 10% 8% 4% 0.75 1 The...
-
Learning how to tie our laces is a milestone in our lives, and teaching someone else how to tie their laces is one of the most common shared teaching experiences we face as adults. In the business...
-
Mr. Geoffrey Guo had a variety of transactions during the 2019 year. Determine the total taxable capital gains included in Mr. Guo's division B income. The transactions included:? 1. On January 1,...
-
W Fire. CPA is examining the accounts receivable (which were recorded at 5500.000) for TEE. Inc.. using a monetary unit sampling application. Using a risk of incorrect acceptance of 5% and a...
-
SugarTown's manufacturing costs for August when production was 1,000 unit appear below. Direct material................................ $12 per unit Direct Labor...
-
A company reports the following: Income before income tax expense...................................................... $4,300,000 Interest...
-
Taveras Corporation is currently operating at 5 0 % of its available manufacturing capacity. It uses a job - order costing system with a plantwide predetermined overhead rate based on machine -...
-
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or...
-
Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C $ Sales price $51.00 $ 61.00...
-
Ashton Company, a distributor of exercise equipment, is preparing a cash budget for December. It provided the following information: a. The cash balance on December 1 is $50,600. b. Actual sales for...
-
Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO. Date...
-
Use the method of Lagrange multipliers in Problem. Minimize f(x, y, z) = x 2 + 4y 2 + 2z 2 subject to x + 2y + z = 10
-
Sheldon and Leonard had a million-dollar idea. In order to make it happen, they have to do special research first. Only Kripke can help them in this matter. But Kripke is known to be the first-class...
-
Two stunt drivers drive directly toward each other. At time t = 0 the two cars are a distance D apart, car 1 is at rest, and car 2 is moving to the left with speed Va. Car 1 begins to move at t = 0,...
-
A marble is released from one rim of a hemispherical bowl of diameter 50.0 cm and rolls down and up to the opposite rim in 10.0 s. Find (a) The average speed and (b) The average velocity of the...
-
You may have noticed while driving that your car's velocity does not continue to increase, even though you keep your foot on the gas pedal. This behavior is due to air resistance and friction between...
-
Pronghorn Corp reported net sales $675,000, cost of goods sold $438,750, operating expenses $154,000, and net income $69,525. Calculate the profit margin and gross profit rate. (Round Profit margin...
-
Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct ma added at the beginning of the first...
-
Here are selected 2022 transactions of Oriole Company. Jan. 1 June 30 Dec. 31 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $64,000 and had a useful life of 10...
Study smarter with the SolutionInn App