« previous next »

Author Question: Dan and Jia are newlyweds and have just purchased a condominium for 70,000. Since the condo is very ... (Read 173 times)

hubes95

  • Hero Member
  • *****
  • Posts: 561
on: Jul 10, 2018
Dan and Jia are newlyweds and have just purchased a condominium for 70,000. Since the condo is very small, they hope to move into a single-family house in 5 years.
 
  How much will their condo worth in 5 years if inflation is expected to be 8 percent?

Question 2

The net present value of the project when adjusting for risk is ________. (See Table 11.7)
 
  A) -9,300
  B) 0
  C) 87,000
  D) 105,000


leahchrapun

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jul 10, 2018
Answer to Question 1

PV = 70,000, r = 8, n = 5
FV = 70,000(1.08)5 = 102,853

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Noid lights are usually purchased as an assortment so that one is available for any type or size ... Noid lights are usually purchased as an assortment so that one is available for any type or size ...
Some IAC units are purchased with the housing as shown. Carbon buildup in these passages can cause ... Some IAC units are purchased with the housing as shown. Carbon buildup in these passages can cause ...
An antique painting is purchased in 1980 for $995. The value increases by 3.1% e An antique painting is purchased in 1980 for $995. The value increases by 3.1% e
Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ... Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ...
A government of Ontario 364-day T-bills with a face value of $50 000 were purchased on January ... A government of Ontario 364-day T-bills with a face value of $50 000 were purchased on January ...
A company purchased 26 desks for $240 each and 18 chairs for $59 each. Compute the total ... A company purchased 26 desks for $240 each and 18 chairs for $59 each. Compute the total ...
Video: Fermentation pathways

For a complete list of videos, visit our video library