Homework Answers
| Original price | 3000 | |
| Projected sale price | 15000 | |
| Time | 30 years | |
| 15000 | 3000*(1+r)^30 | |
| 5 | (1+r)^30 | |
| 1+r= | 5^(1/30) | |
| 1+r= | 1.055113064 | |
| r= | 0.055113064 | |
| r= | 5.511% | |
| Expected price after next 30 years | 15000*(1+5.511%)^30 | |
| Expected price after next 30 years | 75,000.00 | |
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