An undeveloped land in Cabanatuan City, Nueva Ecija bought by XYZ Developer Corporation for ₱450,000 was held for four years and sold for ₱1,062,500. During this time property tax was paid that was, on the average, 0.4% of the purchase price. Inflation in this time period averaged 7% and the income tax was 15.2% of the long-term capital gain. What rate of return was obtained on the investment?
An undeveloped land in Cabanatuan City, Nueva Ecija bought by XYZ Developer Corporation for ₱450,000 was held for four years and sold for ₱1,062,500. During this time property tax was paid that was, on the average, 0.4% of the purchase price. Inflation in this time period averaged 7% and the income tax was 15.2% of the long-term capital gain. What rate of return was obtained on the investment?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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- An undeveloped land in Cabanatuan City, Nueva Ecija bought by XYZ Developer Corporation for ₱450,000 was held for four years and sold for ₱1,062,500. During this time property tax was paid that was, on the average, 0.4% of the purchase price. Inflation in this time period averaged 7% and the income tax was 15.2% of the long-term
capital gain . Whatrate of return was obtained on the investment? - Ferdinand deposits a sum of ₱20,000 at the interest rate of 18% compounded annually for 10 years. Find the maturity value after 10 years.
- A bank gives a loan to a company to purchase an equipment worth ₱1,000,000 at an interest rate of 18% compounded annually. This amount should be repaid in 15 yearly equal installments. Find the installment amount that the company has to pay to the bank.
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