Question 15 [5 pts]

According to the Census Bureau, the average house price in the U.S. was $368,600 in October 2069. In October 2050, the average price was $197,700. What was the annual increase in the price of the average house sold?

Answer (show the steps/calculation toward your answer):

Question 16 [5 pts]

It is December 31, 2050, today. You expect two payments to receive, $20,000 at the end of 2052 and $30,000 at the end of 2054. Upon receiving each payment, you will invest them at 5% per year until the end of 2057. How much will be the value of your investment at the end of 2057?

Answer (show the steps/calculation toward your answer):

Question 17 [5 pts]

Suppose that you have $1,000 in hand and can borrow and lend at 10% per year without restriction. Additionally, you have come across an investment opportunity, which costs you $7,000 today and will return $11,000 in one year. Find out the total value of your wealth in one year from today.

Answer (show the steps/calculation toward your answer):