1. If you inherited $55,000 today and invested all of it in a security that paid a 13 percent rate of return, how much would you have in 20 years? Round the answer to the nearest cent. Round FV-factor to three decimal places.

   Calculate your answer based on the FV-factor.

   $ _____

   Calculate your answer based on the financial calculator.

   $ _______

2. If the average new home costs $270,000 today, how much will it cost in 12 years if the price increases by 3 percent each year? Round the answer to the nearest cent. Round FV-factor to three decimal places.

   Calculate your answer based on the FV-factor.

   $ ______

   Calculate your answer based on the financial calculator.

   $ ______