Gen. Robert E. Lee's Boyhood Home is for Sale The historic Virginia home that Confederate Gen. Robert E....

50.1K

Verified Solution

Question

Finance

Gen. Robert E. Lee's Boyhood Home is forSale
The historic Virginia home that Confederate Gen. RobertE. Lee grew up in hit the market (in April 2018) for $8.5million. (Trapasso, C.)
Robert E. Lee's father Henry rented the home in 1812, accordingto The Washington Post. The family lived there for over 80 years,including Robert E. Lee from age five to when he went to West Pointin 1825. He again visited five years after the Civil War ended, ThePost reported. (Leayman, E.)
The home's other claim to fame is that President GeorgeWashington also dined and lodged there before the Leefamily moved in. (Trapasso, C.)
Built in 1795, the brick house was listed on the NationalRegister of Historic Places in 1986. (Trapasso, C.)
The home had been used as a residence until 1966. The StonewallJackson Memorial Foundation purchased the home and opened it to thepublic. Unable to make ends meet, the foundation sold the home in2000 to Mark and Ann Kington for $2.5 million.(Trapasso, C.)
The boyhood home of Robert E. Lee in Alexandria was listed onthe market with a significant price drop. Previously priced at $8.5million, the six bedroom is available for $6.2 million (March2019). (Leayman, E.)
Calculate the annual compound growth rate of the house pricesince the house was sold to Mark and Ann Kington(since 2000) until the house was listed for sale at a reduced pricein 2019. (Round the number of years to the whole number).Please show your work.
Assume that the growth rate you calculated in question #1remains the same for the next 30 years. Calculate the price of thehouse in 30 years after it was listed at a reduced price in 2019.Please show your work.
Assume that the growth rate you calculated in question #1remains the same since Robert E. Lee's father Henry rented the homein 1812. Calculate the price of the house in 1812. (Round thenumber of years to the whole number). Please show yourwork.
Assume the growth rate that you calculated in #1 prevailedsince 1795. Calculate the price of the house in 1795. (TIP: To getthe answer correctly you need to use the price of the house in yourcalculations in dollars with all zeros). Please showyour work.
You were using the time value of money concept to answerquestion #4. Think about the time line for that problem. What isthe time point 0 in that problem? Please explain youranswer.
In April 2018, the listed price of the house was $8.5 million.Calculate the annual compound growth rate of the house price sincethe house was sold to Mark and Ann Kington (since2000) until the house was listed for sale in 2018. Compare withyour answer to the question #1.
Using the growth rate from question #6, calculate the price ofthe house in 1812. (Round the number of years to the whole number).Please show your work. Compare with youranswer to the question #3.

Answer & Explanation Solved by verified expert

3.7 Ratings (400 Votes)

1 Annual compound growth rate of the house price from 2000 to 2019 listing Price in 2000 P0 25 million price in 2019 P1 62 million Number of years n 2019 2000 19 Total growth rate G P1P0 1 6225 1 148 or 148 Annual compounding rate g 1gn 1G 1g19 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Gen. Robert E. Lee's Boyhood Home is forSaleThe historic Virginia home that Confederate Gen. RobertE. Lee grew up in hit the market (in April 2018) for $8.5million. (Trapasso, C.)Robert E. Lee's father Henry rented the home in 1812, accordingto The Washington Post. The family lived there for over 80 years,including Robert E. Lee from age five to when he went to West Pointin 1825. He again visited five years after the Civil War ended, ThePost reported. (Leayman, E.)The home's other claim to fame is that President GeorgeWashington also dined and lodged there before the Leefamily moved in. (Trapasso, C.)Built in 1795, the brick house was listed on the NationalRegister of Historic Places in 1986. (Trapasso, C.)The home had been used as a residence until 1966. The StonewallJackson Memorial Foundation purchased the home and opened it to thepublic. Unable to make ends meet, the foundation sold the home in2000 to Mark and Ann Kington for $2.5 million.(Trapasso, C.)The boyhood home of Robert E. Lee in Alexandria was listed onthe market with a significant price drop. Previously priced at $8.5million, the six bedroom is available for $6.2 million (March2019). (Leayman, E.)Calculate the annual compound growth rate of the house pricesince the house was sold to Mark and Ann Kington(since 2000) until the house was listed for sale at a reduced pricein 2019. (Round the number of years to the whole number).Please show your work.Assume that the growth rate you calculated in question #1remains the same for the next 30 years. Calculate the price of thehouse in 30 years after it was listed at a reduced price in 2019.Please show your work.Assume that the growth rate you calculated in question #1remains the same since Robert E. Lee's father Henry rented the homein 1812. Calculate the price of the house in 1812. (Round thenumber of years to the whole number). Please show yourwork.Assume the growth rate that you calculated in #1 prevailedsince 1795. Calculate the price of the house in 1795. (TIP: To getthe answer correctly you need to use the price of the house in yourcalculations in dollars with all zeros). Please showyour work.You were using the time value of money concept to answerquestion #4. Think about the time line for that problem. What isthe time point 0 in that problem? Please explain youranswer.In April 2018, the listed price of the house was $8.5 million.Calculate the annual compound growth rate of the house price sincethe house was sold to Mark and Ann Kington (since2000) until the house was listed for sale in 2018. Compare withyour answer to the question #1.Using the growth rate from question #6, calculate the price ofthe house in 1812. (Round the number of years to the whole number).Please show your work. Compare with youranswer to the question #3.