Compute the after-tax real interest rate for the investment

Assignment Help Econometrics
Reference no: EM13219662

Liz Taylor bought some farming lands for $100,000 five years ago. She sold the property this year for $500,000. If the annual inflation rate for the past 5 years has been at 6%, compute the after-tax real interest rate for this investment.

Reference no: EM13219662

Questions Cloud

What is multiplier-how does it differ from govt multiplier : Government decreases current tax, while holding government spending in the present and future constant. (a) How does this effect aggregate output, employment and the real wage What is the multiplier and how does it differ from the government expen..
Explain how the routine measurements : Explain how the routine measurements and observations used by health professionals can be used as indicators of illhealth/health
Evaluate the analyte concentration : a student dispensed 82mL sodium hydroxide(titrant) into the lemon juice(analyte) before the end point was reached. Estimate the analyte concentration, assuming that the acid in the lemon juice is monoprotic.
Community counseling : What do you think about using a pathology based manual in a wellness based profession(community counseling)?
Compute the after-tax real interest rate for the investment : Liz Taylor bought some farming lands for $100,000 five years ago. She sold the property this year for $500,000. If the annual inflation rate for the past 5 years has been at 6%, compute the after-tax real interest rate for this investment.
Incorporate learning from this course model : Incorporate learning from this course model of helping and discuss how and why you have at this point in your development formed your viewpoint.
Compute the price charged for each moldboard plow : The firm employs 300,000 direct labor hours and incurs $400,000 of fixed overhead. Given a markup of 30 percent, compute the price charged for each moldboard plow using the absorption cost method.
Why the president should work with congress : The U.S. economy has fallen into a recession. It is a severe and deep recession, and one that some economic analysts say may persist for at least another year. The unemployment rate has risen to levels not seen in over 20 years.
Identify the components in the problem : Marcus and Arishonne both work to maintain the standard of living that this couple desires, but they are unable to meet the time demands of both work and domestic life.

Reviews

Write a Review

Econometrics Questions & Answers

  Derive the optimal prices and the payoffs for each firm

Consider now that there are two qualities s1 and s2 with s2 > s1 provided by two different  firms 1 and 2. The timing is the following:  first  firms choose their qualities, second they compete in price.

  Calculate the velocity of circulation and nominal gdp

If quantity of money is $3 trillion, real GDP is $10 trillion, the price level is ..09, the real interest rate 2 percent a year, and the nominal interest rate is 7 percent a year, calculate the velocity of circulation, the value M times V, and nom..

  What arrangement might induce the towns to accept facility

the neighboring towns of Arlington and Belmont are trying to decide in which locality to site a new waste incinerator. The towns will share the benefits of the facility and also share the costs. each estimates its net benefit from the incinerator ..

  What is the amount of ten equal annual deposits

What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $3,000 is made at the end of year 11 and subsequent withdrawals increase at the rate of 6% per year over the previous years

  What is the firms short-run production function

Let a firm's long-run production function be Q= 1/10LK +3L^2K-1/10L^3K Assume that in the short-run the firm's labour input is fixed at 10 units. a) What is the firm's short-run production function? b) What are the short-run average and marginal prod..

  Find the cost depletion allowance the company can claim

NA Forest Resources purchased forest acreage for $500,000 from which an estimated 200 million board feet is recoverable. In its first year of operation, the company recovered 24 million board feet. Find the cost depletion allowance the company c..

  What was the capital gain value of eisners stock options

Eisner's bonus was $2.6 million in 1996 and $6 million in 1987. Including the stock options he exercised, his compensation in 1988 was about $41 million, a record at that time for any U.S. executive. In 1993, his total compensation was about $202 ..

  Which of the utility function is consistent

Your loser roommate sits on the couch all day eating pizza and drinking beer. He doesn't have a job, and doesn't consume anything but pizza and beer. Every month, his parents mail him $300 and based on the receipts he leaves lying on the floor.

  What is the actual rate of unemployment in percent

Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 13 percent. Use Okun's law to determine the size of the GDP gap in percentage-point terms.

  Which alternative should select if analysis period is 20year

A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are as follows: A B C Installed cost $10,000 $15,000 $20,000 Uniform annual benefit 1,625 1,625 1,890 Useful life in years 10..

  What are the highest and lowest payments from the writer

What are the highest and lowest payments from the writer that the beekeeper-farmer team will accept for the sixth day Assuming that the farmer can dispose of the $7 from the writer as she wishes, what range of payments will the beekeeper accept

  What issues would arise with hiring best manager

Corporate profitability decline by 20 percent from 2008 to 2009. What performance percentage would you use to trigger executive bonuses for that year Why What issues would arise with hiring and retaining the best manager

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd