Case/Topic # 5 Short-term investments and inflation. Describe some of the short-term investment vehicles that can be used to manage your cash resources. What would you focus on if you were concerned that inflation will increase significantly in the future?

Case/Topic # 6 Estimating closing costs on home purchase. How much might a home buyer expect to pay in closing costs on a $220,000 house with a 10 percent down payment? How much would the home buyer have to pay at the time of closing, taking into account closing costs, down payment, and a loan fee of 3 points? Case/Topic # 7 Home equity lines interest. Isaiah and Allison Burton have a home with an appraised value of $180,000 and a mortgage balance of only $90,000. Given that an S&L is willing to lend money at a loan to-value ratio of 75 percent, how big of a home equity credit line can Isaiah and Allison obtain? How much, if any, of this line would qualify as tax deductible interest if their house originally cost $100,000?