1A)

Some time ago you purchased a house that cost you $263050 and at the current time has a value of $307387 according to a recent market report for your neighborhood. What is the average annual rate of appreciation your home has experienced each year for the last 14 years (assume the rate has remained constant)? (Round your answer to 2 digits)

a. 2.45

b. -0.15

c. -0.26

d. 1.12

e. 1.83

1B)

You need to save $2741 in your account so that you can pay for a trip to the beach with all your friends, and you don't have much time left. You currently only have $1434 in your savings account. You commit to finding a way to add $264 per day to your account until you have enough. You can earn on average 5.1% (APR) in your account (compounded daily - assume a 365 day year). How many days will you need to work before you have enough to buy the laptop?

a. 12.1

b. -0.95

c. 4.9

d. -0.6

e. 15.3

1C)

What will your monthly payment be for a house you purchase for $185,000 today where the bank will finance it for you for 27 years (compounded monthly) at 5% (APR)?

a. 1092

b. 1042

c. 1134

d. 981

e. 1016

ANSWER