Interest rate. In 1972, Bob purchased a new Datsun 240Z for $2,600. Datsun later changed its name to Nissan, andthe 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for fivetimes what he originally paid. What was Bob's annualized rate of return for the 30 years he owned this car? If he keepsthe car for another thirty years and earns the same rate, what could he sell the car for in 2032?What was Bob's annualized rate of return for the 30 years he owned this car?% (Round to two decimal places.)

The interest rate refers to the return that an investment provides to the investor. It is used to…

Answered: Interest rate. In 1972, Bob purchased a…

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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Interest rate. In 1972, Bob purchased a new Datsun 240Z for $2,500.Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for seventimes what he originally paid. What was Bob's annualized rate of return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032? What was Bob's annualized rate of return for the 30 years he owned this car?
Interest rate. In 1972, Bob purchased a new Datsun 240Z for $2,500. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for seven times what he originally paid. What was Bob's annualized rate of return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032? What was Bob's annualized rate of return for the 30 years he owned this car? % (Round to two decimal places.)
Interest rate. In 1972, Bob purchased a new Datsun 240Z for $3,000. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for seven times what he originally paid. What was Bob's annualized rate of return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032? What was Bob's annualized rate of return for the 30 years he owned this car? 6.70 % (Round to two decimal places.) If Bob can earn his current rate of retum on his car, what could he sell the car for in 2032? $ (Round to the nearest cent.)
Interest rate. In 1972, Bob purchased a new Datsun 240Z for$3,400. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for seven times what he originally paid. What was Bob's annualized rate of return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032?
Interest rate. In 1972, Bob purchased a new Datsun 240Z for $3,000. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for six times what he originally paid. What was Bob's annualized rate of return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032?
solve the following problem: His father has asked him to advise him on remortgaging the house (remortgaging means taking out a new loan to pay for the house, depending on the fact that the value of the house has risen and they give him a loan for a greater amount). The house was purchased about 8 years ago at an initial value of $140,000 and a rate of 5.5% per year compounded monthly for twenty years. When performing a revaluation of the house the market value is $185,000. Therefore, a bank offers him an offer of 5.25% annual capitalized weekly to pay off the outstanding debt of the house and 6.5% annual capitalized daily to cover debts that his father has in credit cards and loans, the term would be for a few 15 more years (both loans). His father has a debt in cards in the order of $45,000 and you want to know how much they would lend you to cover the cards, since due to market conditions they only offer you a maximum amount of 80% of the market value of the house.
Hank purchased a $20,000 car two years ago using a 9 percent, five-year loan. He has decided to sell the new car now, if he could get a price that would pay off the balance of his loan. What's the minimum price Hank would need to receive for his car?
Mr. Russ T. Steele sels his old vehicle for $5000 (you get more if you private sale!) and pays cash for a used (but newer vehicle) that costs $10.000. He also understands that he needs to allow for maintenance and operation costs of his vehicle. He estimates that these costs will be approximately $2000 a year and estimates that the costs will increase by $100 per year. He hopes to keep the vehicle for five years and then sell it for an estimated value of $2000. Mr. Steele has an MARR of 8%. The equivalent annual cost of the cash flow associated with his purchase is most nearly: $-1,850 $-3,100 $3,000 $3,800
Doris Wade purchased a condominium for $50,000 in 1988. Her down payment was $26,000. She financed the remaining amount as a $24,000, 30-year mortgage at 9%, compounded monthly. Her monthly payments are $190. It is now 2003 (15 years later) and Doris has sold the condominium for $90,000, immediately after making her 180th payment on the unit. Find her effective annual internal rate of return on this investment. Choose the closest answer below. OA. 5.2% O B. 9% O C. 1.6% OD. 3.8%
Mr. Mangano is considering taking early retirement, having saved $400,000. Mr. Mangano wishes to determine how many years the saving will last if he withdraws $60,000 per year at the end of each year. Mr.Mangano's savings can earn 10 percent per year. 11.67 years. 11.35 years 10.90 years 11.53 years. 12.01 years
According to an old myth, Native Americans sold theisland of Manhattan about 400 years ago for $24. Ifthey had invested this amount at an interest rateof 7 percent per year, how much, approximately,would they have today?
Khalid purchases a new truck for work! If he paid $63,703 for it and it depreciates in value by 50% in the first 7 years, the value of the truck after 7 years is $ (Remember that money is expressed to two decimal places). ?

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