You bought a painting 7 years ago as an investment. You originally paid $127,000 for it. If yousold it for $484,000, what is your annual return on the investment? Assume annualcompounding. (Round to 100th of a percent and enter your answer as a percentage, e.g.,12.34 for 12.34%)Answer:

To determine the annual return on your investment, we'll use the concept of compound interest. The…

Answered: You bought a painting 7 years ago as an…

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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You bought a painting 5 years ago as an investment. You originally paid $168,000 for it. If you sold it for $342,000, what is your annual return on the investment? Assume annual compounding. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%)
Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.
Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive Negative
Assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income. Also assume the investment's value has decreased to $6,800 by the end of the year. (a) What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) Rate of return % (b) Is the rate of return a positive or negative number? Positive O Negative
If you invest $13,276.21 and want to receive $82,006.97 at the end of 31 years, at what APR must you invest? Enter your answer as percentage with two decimal places but without the percent symbol. For example, if your answer is 90.1234%, enter 90.12
Consider an investment where $49,000 is invested for 10 years at 8% compounded continuously. a) How much will this investment be worth after 10 years? (Round your answer to the nearest cent.) $ _____ b) What is the total amount earned in compound interest? (Round your answer to the nearest cent.) $ _____
You just purchased a parcel of land for $54,000. To earn a 11% annual rate of return on your investment, how much must you sell the land for in 5 years? Assume annual compounding. (Round to nearest penny, e.g. 1234.56)
Suppose you inherited $1,000,000 and invested it at 12.00% per year. How much could you withdraw at the end of each of the next 20 years? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $133,878.78 O $50,000 O $119,534.63
You are able to invest $100 at the end of 1 year into an investment earning 6%. At the endof year 2, you are going to add $1,000 to this investment and at the end of year 3, you are going to addanother $1,000. What will the investment be worth at the end of year 3?
Sam makes an investment of $200 at the end of each of the next 4 years. If the rate of return is 9%, how much is the present value of this investment? (Round your answer to two decimal places.) Multiple choice question. $566.74 872.00 $733.94 $647.94
Suppose your uncle invested $113,000 in an investment 4 years ago. The investment is worth now $237,500. The annual interest rate (rate of return) on the investment during this period must be % per year. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))
You are offered an investment that will pay •$200 in year 1, •$400 the next year, •$600 the following year, and •$800 at the end of the 4th year. •You can earn 14 percent on similar investments. What is the most you should pay for this one? Respuesta:

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You bought a painting 7 years ago as an investment. You originally paid $127,000 for it. If you sold it for $484,000, what is your annual return on the investment? Assume annual compounding. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%) Answer: