3. The average price of new homes is $138,500. If new home prices are increasing at a rate of 15% per year, how much will a new home cost in 12 years? 4. You deposit $3,500 into an account every year for 6 years. The account pays 7% interest. How much will you have at the end of that time? 5. You deposit $4,000 each year into a retirement account paying 8% interest. How much will you have in 25 years when you retire? 6. What is the present value of $5,000 to be received in 7 years at an interest rate of 7%? 7. You can buy a parcel of real estate today that you estimate will bring $15,000 in 9 years. Assuming your money is worth 9%, how much would you be willing to pay for the property? 8. An insurance company is willing to settle a dispute with you. They will pay you $7,000 per year for the next 8 years, or one lump sum right now. Assuming your money is worth 5%, how much would you be willing to settle for? 9. You currently receive $10,000 per year on a contract. You expect it to run another 7 years. Someone wants to buy the contract from you. If you can earn 12% on other investments of this quality, how much would you be willing to sell the contract for? 10.You can insulate your home for $7,200. You figure you can save 15% per year on your heating bill if you insulate. Your home was bought 15 years ago for $38,500. You figure real estate prices have gone up 16% each year. You plan to live in the house another 10 years. Your home has five