Suppose you purchased a house in San Diego in January of 1994 for $75,000. You then sold that house in December of 2006 for $350,000. Assume that the CPI rose in that period from 107 to 180. What was your total nominal rate of return? How about your annual nominal rate of return? What was your total real return? How about you annual real return?

Q: Suppose you are 40 years old. Your only debt is a mortgage = $450,000. The current value of your…

A: Mortgage refers to the loan taken by individual for purchasing tangible fixed asset that is…

Q: : identify the values for the variables, in write an equation that can be used to find the amount of…

A: Future Value: It is the future worth of the present sum of the amount and is estimated by the…

Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…

A: Given:

Q: You have an investment account that started with $4,000 10 years ago and which now has grown to…

A: A.) We are given Amount invested (Present value) =4000 No. of period(Nper)=10years Amount grown to…

Q: You invest $94.1, and your investment account shows $107.9 at the end of year one, $97.9 at the end…

A: The formula for the Annual Holding Period Return (HPR) is given by:HPR Let's calculate the HPR for…

Q: The Total Return on an investment is the relative change in the investment value over a given time…

A: Total return in dollar is the difference between the price received at the end and the price paid at…

Q: Assume you deposit $1,000 in your savings account. Performance a sensitivity analysis on the…

A: Here,Deposit is $1,000Time Period is 10 years

Q: What is the total interest you will have paid for the scenario below? The home you purchased was…

A: Payment per period can be calculated using PMT function in excel.PMT(rate, nper, pv, [fv],…

Q: Say you own an asset that had a total return last year of 16 percent. Assume the inflation rate last…

A: Given information,Return: Inflation rate: To calculate,Real return

Q: You open an account where you deposit $500 today. Further, you deposit $800 at the beginning of next…

A:

Q: You just paid $551 for a security that claims it will pay you $1910 in 15 years. What is your annual…

A: Annual rate of return means the percentage of gain on something annually. It is a measure of yearly…

Q: Your current account balance is $7,500.  You invested $6,300 5 years ago.  What rate of return did…

A: Answer) Future value = P×(1+r)^n r is interest rate P is amount n is years Given: Future value =…

Q: oday, your investing account has a balance of $3,600. You opened the account with a deposit of…

A: Formula:- F = A (1+r) n where , F = future value A = initial investment r = interest rate n = time…

Q: Laureen Mauer's salary a year ago was $54,000. If inflation during the year was 3.5 percent in Tampa…

A: GIVEN, SALARY YEAR AGO = $54000 INFLATION = 3.5%

Q: Say you sold a property for $200,000 after holding it for two years. You paid $140,000 for it and…

A: The return on sales of assets is also recognized as a return on the capital gain. The…

Q: Ten annual returns are listed in the following table 19.9% 16.6% - 50.0% a. What is the arithmetic…

A: Arithmetic average return =  Total Return / Number of yearsResult:-Arithmetic average return = 8.05%

Q: If a person saves $62 a month by using coupons and doing comparison shopping, (a) what is the amount…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: Suppose that you want to take out a loan and that your local bank wants to charge you an annual real…

A: Compute the nominal interest rate: Nominal interest rate is calculated by using following formula:

Q: An investor is indifferent between receiving $3,000 today and $4,887 in 10 years. The investor is…

A: The discount rate is the interest rate earned on the invested amount to receive a given future…

Q: An investment offers a total return of 11 percent over the coming year. Alex Hamilton thinks the…

A: 1) Nominal return is 11% and real rate of return is 7.4% Nominal rate of return when adjusted for…

Q: You have determined that you will need to accumulate $1,000,000 in your retirement account in order…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: - 19.6% 16.2% 18.3% - 49.8% 43.7% 1.1% - 16.4% . What is the arithmetic average return over the…

A: Arithmetic average is simple average and can be obtained by adding and dividing by the total number.

Q: Find the present worth sum of money that would be equivalent to the future amounts of $5000 in year…

A: a) Inflation Adjusted Rate = Real Rate + Inflation Rate Inflation Adjusted Rate = 10%+5% Inflation…

Q: What would be the return on your investment as a percentage to 6 decimal places if you buy a $5,000…

A: Return on investment: It is the total return that an investment generates in a particular time.

Q: Assume that at the beginning of the year, you purchase an investment for $2,500 that pays $67 annual…

A: Purchase price of the investment = $2,500Investment value at the end = $2,350Annual income received…

Q: Suppose the interest rate is 4.4%. a. Having $550 today is equivalent to having what amount in one…

A: a. Future Value:Having $550 today is equivalent to having $574.20 in one year at a 4.4% interest…

Q: You purchased JM Smucker (SJM) two years ago. During that time the total return for SJM has been…

A: Annualized return refers to the rate of return that is being earned by the investors over the amount…

Q: You want to have $5 million when you retire in 30 years. You feel that you can save $750 per month…

A: The objective of this question is to find out the Annual Percentage Rate (APR) that needs to be…

Q: You want to have an income of $50,000 per year in retirement, and you think you will be alive for 30…

A: The Amount that to  have in the account on the day of retirement will be equal to the present value…