ASSUME ALL ANNUITIES ARE ORDINARY ANNUITIES UNLESS I SPECIFICALLY STATE THAT IT IS AN ANNUITY DUE!

1. - Juan is selling his house for $200,000. He bought it for $164,000 ten years ago. What is the approximate annual return on his investment?

2. -Bill borrowed $150,000 to buy a business. His loan cost was 6% and he promised to repay the loan in 15 equal annual payments. How much are the annual payments, approximately?

3. -The Federal Reserve introduces $15,000,000 of new money into the monetary system. The flat Required Reserve rate on deposited reserves is 4%. The amount of new money that will be created as a result is approximate: