Business Finance: Property Price, Income, Expense, Tax and Savings

Running head: BUSINESS FINANCE
Business Finance
Name of the Student:
Name of the University:
Authors Note:

BUSINESS FINANCE
1
Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................3
Answer to question 3:.................................................................................................................5
Answer to question 4:.................................................................................................................6
Answer to question 5:.................................................................................................................8
Answer to question 6:...............................................................................................................11
Answer to question 7:...............................................................................................................11
Reference and Bibliography:....................................................................................................13

BUSINESS FINANCE
2
Answer to question 1:
Year Price Four Year Average Price change
2002 262
2003 293
2004 309
2005 321 296
2006 345 317 7.07%
2007 372 337 6.20%
2008 389 357 5.93%
2009 419 381 6.88%
2010 494 418 9.76%
2011 492 448 7.21%
2012 488 473 5.52%
2013 517 498 5.18%
2014 543 510 2.47%
2015 587 534 4.61%
2016 633 570 6.78%
2017 684 612 7.34%
Average 4.33%
Inflation rate 1.92%
Year Amount "Million"
Year 0 $ 0.68
Year 1 $ 0.71
Year 2 $ 0.74
Year 3 $ 0.78
Year 4 $ 0.81
Year 5 $ 0.85
Year 6 $ 0.88
Year 7 $ 0.92
Year 8 $ 0.96
Year 9 $ 1.00
Year 10 $ 1.04
Year 11 $ 1.09
Year 12 $ 1.14
Year 13 $ 1.19
Year 14 $ 1.24
Year 15 $ 1.29
Year 16 $ 1.35
Year 17 $ 1.41
Year 18 $ 1.47
Year 19 $ 1.53

BUSINESS FINANCE
3
Year 20 $ 1.60
Year
0
Year
1
Year
2
Year
3
Year
4
Year
5
Year
6
Year
7
Year
8
Year
9
Year
10
Year
11
Year
12
Year
13
Year
14
Year
15
Year
16
Year
17
Year
18
Year
19
Year
20
$0.68$0.71$0.74$0.78$0.81$0.85$0.88$0.92$0.96$1.00$1.04$1.09$1.14$1.19$1.24$1.29$1.35$1.41$1.47$1.53$1.60
Property price for next 20 years "In Million"
The 4-year average price is a relatively used for detecting the price change of housing
in Melbourne from 2002 to 2017. This relevant measure helps in understanding the relevant
prices of housing in Melbourne which would eventually rice in future. The calculation is
adequately deducted from inflation rate to understand the actual increment in property price.
This would help in detecting the actual price level that is been changed in the housing price.
The above table relatively represents the overall average rate and the 20 year future prices of
houses in Melbourne. The housing price will relatively increased from $0.68 million to $1.60
million in 20 years. The graph relevantly represents of the price increment of property in next
30 years, which is essential to draft the financial plan for the client to achieve her Australian
dream (Randolph & Tice, 2014).
Answer to question 2:
Year Weekly Income Yearly Income Four Year Average Price change
1994–95 $ 1,340 $ 69,680
1995–96 $ 1,297 $ 67,444
1996–97 $ 1,342 $ 69,784
1997–98 $ 1,400 $ 72,800 69,927
1999–2000 $ 1,534 $ 79,768 72,449 3.61%