QUESTION 18 Lucy bought a house for $100,000. Lucy's annual cost of ownership net of tax savings is exactly equal to the annual rent she would have paid to live in the sam house. The house price grows 4.5% annually (compounded annually). Lucy will sell the house in one year. What is Lucy's annualized IRR?
QUESTION 18 Lucy bought a house for $100,000. Lucy's annual cost of ownership net of tax savings is exactly equal to the annual rent she would have paid to live in the sam house. The house price grows 4.5% annually (compounded annually). Lucy will sell the house in one year. What is Lucy's annualized IRR?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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![O B. $82,500.00
OC. $7,000.00
OD.$5,500.00
QUESTION 18
Lucy bought a house for $100,000. Lucy's annual cost of ownership net of tax savings is exactly equal to the annual rent she would have paid to live in the same
house. The house price grows 4.5% annually (compounded annually).
Lucy will sell the house in one year. What is Lucy's annualized IRR?
Click Save and Submit to save and submit. Click Save All Answers to save all answers.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fecfe598f-5115-495a-994e-2672f72d790b%2F63a63d89-b258-4d8e-92f2-0996a195fd43%2Fhkwfqpm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:O B. $82,500.00
OC. $7,000.00
OD.$5,500.00
QUESTION 18
Lucy bought a house for $100,000. Lucy's annual cost of ownership net of tax savings is exactly equal to the annual rent she would have paid to live in the same
house. The house price grows 4.5% annually (compounded annually).
Lucy will sell the house in one year. What is Lucy's annualized IRR?
Click Save and Submit to save and submit. Click Save All Answers to save all answers.
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