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1. You bought a home in August 2017 for $270,657. You sold that home for $328,419 in August 2020. The average annual inflation rate over

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1. You bought a home in August 2017 for $270,657. You sold that home for $328,419 in August 2020. The average annual inflation rate over this time frame is 1.9%. Note: The prices given are the average US home prices, and the inflation is the US inflation rate for this time period. . What is the ROI ignoring inflation? o What if the effective interest rate ignoring inflation? . If you scale the sales price for inflation, what is the effective interest rate? o What is the ROI if you scale the sales price for inflation? 2. The number selling pickup truck in the US is the F-150. You have just graduated with a BS-ME degree and want to reward yourself with a new vehicle. You choose the Ford F-150 since it is the best-selling pickup in the US. You have two options: o Lease a Ford F-150 with a down payment of $4889 and monthly payments of $399 per month for three years. At the end of three years, you must pay an excess mileage charge of $0.20 for every mile over 31,500. You expect to accumulate an annual mileage of 12,000 miles per year. . Buy an F-150 for $47,250 with $0 down and 72 monthly payments at an annual interest rate of 4.9%. In three years, the vehicle will be worth $37,500. 1. You bought a home in August 2017 for $270,657. You sold that home for $328,419 in August 2020. The average annual inflation rate over this time frame is 1.9%. Note: The prices given are the average US home prices, and the inflation is the US inflation rate for this time period. . What is the ROI ignoring inflation? o What if the effective interest rate ignoring inflation? . If you scale the sales price for inflation, what is the effective interest rate? o What is the ROI if you scale the sales price for inflation? 2. The number selling pickup truck in the US is the F-150. You have just graduated with a BS-ME degree and want to reward yourself with a new vehicle. You choose the Ford F-150 since it is the best-selling pickup in the US. You have two options: o Lease a Ford F-150 with a down payment of $4889 and monthly payments of $399 per month for three years. At the end of three years, you must pay an excess mileage charge of $0.20 for every mile over 31,500. You expect to accumulate an annual mileage of 12,000 miles per year. . Buy an F-150 for $47,250 with $0 down and 72 monthly payments at an annual interest rate of 4.9%. In three years, the vehicle will be worth $37,500

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