question 6, a thru d

4. Ben Collins plans to buy a house for $220,000. If the real estate in his area is expected to increase in value 2 percent each year, what will its approximate value be seven years from now? (LO1.2) 5. What would be the yearly earnings for a person with $8.000 in savings at an annual interest rate of 1.5 percent? (LO1.3) 6. Using a financial calculator, Excel, or the time value of moncy tables in the chapter appendix, calculate the following: (LO1.3) a The future value of $550 six years from now at 7 percent. b. The future value of $700 saved each year for 10 years at 8 percent. C The amount a person would have to deposit today (present value) at a 5 percent interest rate to have $1,000 five years from now d. The amount a person would have to deposit today to be able to take out S500 a year for 10 years from an account earning 8 percent. 7. If you desire to have $10,000 for a down payment for a house in five years, what amount would you need to deposit today? Assume that your money will earn 4 percent. (LO1.3) 8. Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $8,000 available each year for various school and living expenses. If he earns 3 percent on his money, how much must he deposit at the start of his studies to be able to withdraw $8,000 a year for three years? (LO1.3) 9. Carla Lopez deposits $3,000 a year into her retirement account. If these funds have average earnings of 7 percent over the 40 years until her retirement, what will be the value of her retirement account? (LO1.3) 0. If a person spends $10 a week on coffee (assume $500 a year), what would be the