Question: You bought a regular house which current value is 500,000. If the value of the house grows according to the formula V= 500,000 x (0.9t

You bought a regular house which current value is 500,000. If the value of the house grows according to the formula V= 500,000 x (0.9t+1)^1/3. The interest rate is 5% per year semi-annually compounded. t stands for time and is measured in years. Time is set to zero at the present time.

When is the optimal time to sell the house?
Compute its optimal selling value

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

You bought a regular house which current value is 500,000. If the value of the house grows according to the formula V: 500,000 x (0.9t +1)\"3. The interest rate is 5% per year semi-annually...

this is the entire question You bought a regular house which current value is 500,000. If the value of the house grows according to the formula V= 500,000 x (0.9t +1)1/5. The interest rate is 5% per...

You bought a regular house which current value is 500,000. If the value of the house grows according to the formula V= 500,000 x (0.9t+1)1/3. The interest rate is 5% per year semi-annually...

a) Graphically demonstrate the Fisher separation theorem for the case where an individual ends up borrowing in the financial markets. Label the following points on the graph: initial wealth Wu;...

You bought a regular house which current value is 500,000. If the value of the house grows according to the formula V=500,000 x (0.9t+1)13. The interest rate is 5% per year semi-annually compounded....

You bought a regular house which current value is 500,000. If the value of the house grows according to the formula V=500,000 (0.9t+1)]. The interest rate is 5% per year semi-annually compounded. t...

Problem 2 (25 marks) You bought a regular house which current value is 500.000. If the value of the house grows according to the formula V=500,000 x (0.9t+1)13. The interest rate is 5% per year...

Question 4 (Marks: 15) Stacey Lang, 48 years old, has lived in George for the past 30 years. Stacey was relocated in the current year to Johannesburg after accepting an executive director position at...

Q1 Mary has the free use of a house (6 rooms) which are rented by the company she works for. The company pays R15 300 rent per month. The company pays all cost relating to the house and the house is...

Represent the function (4*z+3)/(z*(z-3)*(z+2)) in Laurent series 1. within |z|=1 2. in the annular region between |z|=2 and |z|=3

The Delacroix Inn in Alexandria is a small exclusive hotel with 20 rooms. Guests can call housekeeping from 8:00 A.M. to midnight for any of their service needs. Housekeeping keeps one person on duty...

The following statement permits assembly if arg 1 is exactly the same as arg 2 ? ( casesensitive comparison ) : IFIDN

What is true about agile project management option A the life cycle has four stages explore sequence produce and close option be the agile team continues to work on features until completed...

=+3. Do differences in profitability exist within the different business models in the video game industry? State possible reasons?

=+3. Explain a few differences between the business models of the music publishing houses and the record producer.

=+1. Point out the range of services by means of an example of the video and computer game industry! Also distinguish between the online and offline range of services!