Buying your own home is often mentioned as "the best investment you can make." In 1964, the average home sale pricewas $19,600. By 2009, the average home sale price had risen to $272,900. What was the average annual rate of changein the price of houses over this 45 year time period?10.52% per year12.16% per year6.03% per year3.74% per yearF

Beginning value = $19,600Ending value = $272,900Number of years = 45 yearsAverage annual rate…

Answered: Buying your own home is often mentioned…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hello, Just checking to see if this answer is correct. Please see below: Problem 1: The following two figures illustrate historical home price trend and interest rate for the 30-years fixed rate mortgage in the United States. Based on the information, please answer the following questions if today were in 2013. Assuming that history will repeat itself, what do you think of the U.S. housing market for the next 10 years? How about mortgage rate for the next 10 years? Based on your prediction, answer the two questions below: a)If you have money, should you invest in the housing market? b)If your answer in a) is “Yes”, and one lender allows you to borrow money, should you borrow money to buy the property? Why?
Paying rent and insurance premiums are examples of an annuity due. Suppose you have to pay a monthly rents of $1,800 for an apartment studio in LA at the beginning of every month. The annual interest rate is 4%. What comes closest to the present value of the monthly rents if you intend to live there for 24 months and the rent is not expected to change? 28540 45050 43000 41600 000
A 162. Subject:- finance
A person purchased a $207,038 home 10 years ago by paying 10% down and signing a 30-year mortgage at 8.7% compounded monthly. Interest rates have dropped and the owner wants to refinance the unpaid balance by signing a new 30-year mortgage at 4.5% compounded monthly. How much interest will refinancing save? Money Saved: S (Round to the nearest cent as needed.)
You own a lot in Key West, Florida, that is currently unused. Similar lots have recently sold for $1.8 million. Over the past five years, the price of land in the area has increased 11 percent per year, with an annual standard deviation of 15 percent. A buyer has recently approached you about buying the land in the next 11 months for $2,030,000. The risk-free rate of interest is 5 percent per year, compounded continuously. You want the option to sell the land to the buyer in one year. What is the price of the transaction today?
Please answer with explanation. I will really upvote. Thanks
The purchase price of an acre of land in the Louisiana purchase in 1803 was about 4 cents. Suppose the value of this property grew at an annual rate of 4.9% compounded annually. What would an acre of land be worth in 2016?
K76. You own a lot in Key West, Florida, that is currently unused. Similar lots have recently sold for $1.7 million. Over the past five years, the price of land in the area has increased 11 percent per year, with an annual standard deviation of 17 percent. A buyer has recently approached you about buying the land in the next 10 months for $1,920,000. The risk-free rate of interest is 4 percent per year, compounded continuously. You want the option to sell the land to the buyer in one year. What is the price of the transaction today?
This morning, you borrowed $14,700 at an APR of 8.9 percent. If you repay the loan in one lump sum three years from today, how much will you have to repay? $15,514.47 $18,984.58 O $19,022.33 $15,324.60 O None of these answers are correct
Please answer quickly and correctly
A homeowner purchased a house 30 years ago by $85,000, today the house value is $140,000. What compounded annual interest rate was recover by the owner of the house?

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