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AURORKA [14]
3 years ago
9

You buy a house for $220,000 in a neighborhood where home prices have risen 5% annually on average. You suspect that growth in h

ome prices will slow to an average of 3.5% per year over the next five years. If your growth estimate of 3.5% growth is correct, how much less will your house be worth in five years compared with 5% growth
Business
1 answer:
Y_Kistochka [10]3 years ago
8 0

Answer:

Explanation:

worth of  the house when the price rises 5% annually on average  

Fv = Pv ( 1 + r)^n

where Pv = $ 220000, rate = 5 / 100 = 0.05 and n number of years = 5

Fv = $ 220000 ( 1 + 0.05)⁵

but it was estimated that it will rise by 3.5% annually

Fv for 3.5% = $ 220000 ( 1 + 0.035)⁵

the amount the house will worth less compared to 5 % growth = $ 220000 ( 1 + 0.05)⁵  - ($ 220000 ( 1 + 0.035)⁵) = $ 19490.96

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When a multinational corporation opens a new factory in another country, what economic responsibilities must it follow? Are ther
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The responsibilities that must be considered when a multinational opens a new factory in another country are legal and cultural responsibilities.

<h3 /><h3>What are the obligations of a multinational?</h3>

A corporation with units in different countries must follow the legislation in force in the place, adapting its processes and services to essential requirements, such as payment of taxes and licenses to operate in the country.

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The flynns' monthly budget allowed them to spend $555 for household expenses. during june and july they had a room in their home
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4 years ago
In terms of the product life cycle, the soft-drink market is basically a mature market. There are still many profitable small re
garik1379 [7]

Answer:

a. Product differentiation

Explanation:

Product differentiation -

It is the marketing strategy , which tries to differentiate their goods and services from rest of the competition , is known as the product differentiation .

This strategy involves highlighting the different and unique features which they offer .

Hence , from the question , the strategy required by the small bottlers to use is the Product differentiation , to survive in the upcoming competition market .

3 0
3 years ago
Rose Hill Trading Company is expected to have EPS in the upcoming year of $8. The expected ROE is 18%. An appropriate required r
Alborosie

Answer:

The dividend in the upcoming year should be $2.40

Explanation:

Given:

EPS(Earnings Per Share) = $8

Expected ROE(return on equity) = 18%

Appropriate required return = 14%

Plowback ratio = 70%

Required:

Find the dividend

To find the dividend, we need to first calculate the dividend payout ratio.

To find the dividend payout ratio, use the formula below:

Dividend payout ratio = 1 - plowback ratio

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The dividend payout ratio is 30%

Therefore, the dividend for the upcoming year would be calculated using the formula below:

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The dividend in the upcoming year should be $2.4

5 0
3 years ago
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