Calculate the annual compound growth rate of the house price

Assignment Help Accounting Basics

Reference no: EM132848558

"Before there was Paris Hilton, there was Consuelo Vanderbilt Balsan - a Gilded Age heiress and socialite, renowned for her beauty and wealth. Now Ms. Balsan's onetime Hamptons home is slated to hit the market priced at $28 million with Tim Davis of the Corcoran Group.

Located on Ox Pasture Road in Southampton, the shingle-style home was built around 1900 and is known as "Gardenside" or "Cara-Mia". Ms. Balsan, the great-granddaughter of railroad magnate Cornelius Vanderbilt, owned the house until her death in 1964.

According to public records, the estate is owned by Robert G. Goldstein, executive vice president and president of global gaming operations at Las Vegas Sands Corp, and his wife Sheryl, who purchased the house in 2007 for $17.4 million." (The Wall Street Journal, August 1, 2014, M2)

NOTE; All periods are at the end of the year and the end date is 2014, when the article was published.

Question 1: Calculate the annual compound growth rate of the house price during the period when the house was owned by Robert G. Goldstein (since 2007). (Round the number of years to the whole number).

Question 2: Assume that the growth rate you calculated in question #1 remains the same for the next 20 years. Calculate the price of the house in 20 years.

Question 3: Assume the growth rate that you calculated in #1 prevailed since 1900. Calculate the price of the house in 1900.

Question 4: Assume the growth rate that you calculated in #1 prevailed since 1900. Which price was paid for the house in 1964?

Reference no: EM132848558

Questions Cloud

How much dividend was distributed to preferred shareholders : In 2020, Oriole declared and paid dividends of $24000. How much of the 2020 dividend was distributed to preferred shareholders

What is the probability that x is less than 22 minutes : The random variable X is exponentially distributed, where X represents the time it takes for a person to choose a birthday gift. If X has an average value of 20

Determine the payment you should make for the bonus : The bond has a face value of $ 900 and a market interest rate of 8%. Determine the payment you should make for the bonus

What is the required rate of return on the client : What is the required rate of return on the client's investment portfolio? Carry your answer out to 4 decimal places.

Calculate the annual compound growth rate of the house price : Calculate the annual compound growth rate of the house price during the period when the house was owned by Robert G. Goldstein (since 2007).

Confidence interval for the population mean : Construct a 95% confidence interval for the population mean based on the information given

How much will operating income change : Zephram Corporation has a plant capacity of 200,000 units per month. If they accept the special order, how much will operating income change

What is the approximate percentage of bulbs : The manufacturer of an extended-life lightbulb claims the bulb has an average life of 13,000 hours with a standard deviation of 1,000 hours.

Distinguish between the short run and the long run : Distinguish between the short run and the long run. What will differentiate the short run and the long run? Describe fixed inputs and variable inputs.

User Account

All Pages