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 aclassic. 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 ofreturn 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.)

ANNUALIZED RATE OF RETURN Annualized Rate of Return is a Return Generated on an Investment.…

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

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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Interest rate. In 1972, Bob purchased a new Datsun 240Z for $2,600. 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 five 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 $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 $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?
Ten years ago the Jacksons bought a house, taking out a 30 year mortgage for $170,000 at 5.75%. This year (exactly 10 years later) they refinanced the house, taking out a new 30 year mortgage for the remaining balance at 4.375%. What was the monthly payment on the original 5.75% mortgage? What was the remaining balance after 10 years (the amount they then refinanced)? How much interest did they pay during those first 10 years? What is the monthly payment on the refinance 4.375% mortgage? How much interest will they pay over the 30 year term of the refinance? How much total interest will they pay over the full 40 years the Jacksons have a loan for the house? Make sure your work shows how you are solving the problems, but feel free to use your calculator extensively - you don't need to show detailed steps of the formula evaluation.
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). ?
Ten years ago the Jacksons bought a house, taking out a 30 year mortgage for $170,000 at 6.5%. This year (exactly 10 years later) they refinanced the house, taking out a new 30 year mortgage for the remaining balance at 4.25 % . What was the monthly payment on the original 6.5% mortgage? What was the remaining balance after 10 years (the amount they then refinanced)? How much interest did they pay during those first 10 years? What is the monthly payment on the refinance 4.25% mortgage? How much interest will they pay over the 30 year term of the refinance? How much total interest will they pay over the full 40 years the Jacksons have a loan for the house?
Saul Cervantes has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts at the end of each of the next five years: $10, 450, $ 8, 500, $9,675, $12, 500, and $11, 635. If the appropriate discount rate is 10.875 percent, what is the cost in today's dollars of the equipment Saul purchased today?
Wade Ellis buys a car for $16,346.66. He puts 10% down and obtains a simple interest amortized loan for the balance at 0.1150 interest for four years. After three years and two months of making the minimum monthly payment, he sells his car. Find the unpaid balance on his loan. (Round your answer to the nearest cent.)
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%
Val bought a car for $48,000, putting down $15,000 cash and financing the remainder. How much are his annual car payments if he financed the car for 5 years and paid an annual interest rate of 6 percent? answer is 7,834.08 How much would be his annual payments if he made payments at the beginning of each year? answer is 7,390.64

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