Needing some help on how to answer this... a little confused on which formulas I should be
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Needing some help on how to answer this... a little confused on which formulas I should be using to answer these questions.
Ms. Balsan's onetime Hamptons home is slated to hit the market priced at $28 million with Tim Davis of the Corcoran Group.
Located on Ox Pasture Road in Southampton, the shingle-style home was built around 1900 and is known as "Gardenside" or "Cara-Mia". Ms. Balsan, the great-granddaughter of railroad magnate Cornelius Vanderbilt, owned the house until her death in 1964.
According to public records, the estate is owned by Robert G. Goldstein, executive vice president and president of global gaming operations at Las Vegas Sands Corp, and his wife Sheryl, who purchased the house in 2007 for $17.4 million.
- Calculate the annual compound growth rate of the house price during the period when the house was owned byRobert G. Goldstein (since 2007). (Round the number of years to the whole number).Please show your work.
- Assume that the growth rate you calculated in question #1 remains the same for the next 20 years. Calculate the price of the house in 20 years after it was sold.Please show your work.
- Assume that the growth rate you calculated in question #1 remains the same since the house was sold. Calculate the price of the house today. (Round the number of years to the whole number).Please show your work.
- Assume the growth rate that you calculated in #1 prevailed since 1900. Calculate the price of the house in 1900.Please show your work.
- Assume the growth rate that you calculated in #1 prevailed since 1900. Which price was paid for the house in 1964?Please show your work.
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