Question
The following information is available on the consumer price index at the beginning of each year: Year Consumer Price Index 2010 195,5 2011 202,4 2012
The following information is available on the consumer price index at the beginning of each year:
Year | Consumer Price Index |
2010 | 195,5 |
2011 | 202,4 |
2012 | 221,5 |
2013 | 224,7 |
2014 | 230,1 |
2015 | 239,2 |
2016 | 249,7 |
2017 | 266,9 |
2018 | 282,3 |
2019 | 334,8 |
A) Anna bought a property at the beginning of 2016 for 15 million dollars. At the beginning of 2017, she sold it. Annas annual nominal return was 9%. What was Annar's annual real return during the period?
B) John bought a property at the beginning of 2015 for 2 million dollars. Two years later he sold it. John reckons that the annual real return on investment has been 16%. What was the sale price of the property?
C) Jonathan bought property 95 at the beginning of 2011. Three years later he sold it at 220. What was Jonathan's annual real return?
D) Fredrik sold a property at the beginning of 2019 at 36. He had bought it three years before. The annual nominal return was 15%. What was the purchase price of the property?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started