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Pretty basic personal finance. Five questions. They don't need much work #1 If the value of land in an area is increasing 4 percent a
Pretty basic personal finance. Five questions. They don't need much work
#1 If the value of land in an area is increasing 4 percent a year, how long will it take for the property values to double? (Use the Rule of 72 and Round your answer to 1 decimal place.) Answer __________ Years #2 Ben Collins plans to buy a house for $156,000. If the real estate in his area is expected to increase in value by 2 percent each year, what will its approximate value be seven years from now? Use Exhibit 1-A from the text. (Round your FV factor to 3 decimal places and final answer to the nearest dollar amount.) Answer $__________ #3 If you desire to have $15,000 for a down payment for a house in seven years, what amount would you need to deposit today? Assume that your money will earn 6 percent. Use Exhibit 1-C from the text. (Round your PV factor to 3 decimal places and final answer to the nearest dollar amount.) Answer PV Factor _________ $ _________ #4 If a person spends $14 a week on coffee ($14 x 52 =$728 a year), what would be the future value of that amount over 5 years if the funds were deposited in an account earning 2 percent? Use Exhibit 1-B from the text.. (Round your FV factor to 3 decimal places and final answer to the nearest dollar amount.) Answer FV Factor _________ $ _________ #5 If you borrow $9,500 with at 8 percent interest rate to be repaid in 5 equal payments at the end of the next 5 years, what would be the amount of each payment? Use the present value of an annuity table in the Exhibit 1-3. (Round your PV factor to 3 decimal places and final answer to the nearest dollar amount.) Answer PV Factor _________ $ _________ Per YearStep by Step Solution
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