U Question 31 18 pts (a) Using the rule of 72, assuming the value of land in an area is increasing 6 percent a year, how long will it take for property values to double? (3 marks) (b) You are planning to go to graduate school in a program of study that will take three years. You want to have $15,000 available each year for various school and living expenses. If you can earn 4% on your money, how much must be deposited at the start of your studies to be able to withdraw $15,000 a year for three years? (3 marks) (c) A few years ago, Michael purchased a home for $200,000. Today, the home is worth $300,000. His remaining mortgage balance is $100,000. Assuming Michael can borrow up to 80 percent of the market value of his home, what is the maximum amount he can borrow? (4 marks) (d) Kelly has health insurance coverage that pays 80 percent of out-of-hospital expenses after a $500 deductible. If Kelly has doctor and prescription medication expenses of $1,100, what amount would the insurance company pay? (4 marks) (e) You are the wage earner in a "typical family," with $60,000 gross annual income. Use the easy method to determine how much life insurance you should carry? (4 marks)