Question
1. Jimmy owns a piece of land worth $390000. Bill wants to buy the land from Jimmy by offering him a 10% deposit on the
1. Jimmy owns a piece of land worth $390000. Bill wants to buy the land from Jimmy by offering him a 10% deposit on the land and 2 equal payments of $177500 at the end of every 2 years for the next 4 years. If money is worth j2=4.5% for the 1st 2 years and j1=3.75% afterwards, should Jimmy accept the offer? Based on your decision how much money would Jimmy make (or save) at the time of the last payment by his decision?
2. The student population at Wilfrid Laurier University was 16000 on Dec 31st 2005. The student population is increasing at a rate of 5% every year. What would be the increase in population in the calendar year 2014?
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