1. Using the rule of 72, approximate the following amounts. a. If the value of land in an area is increasing 6 percent a year, how long will it take for property values to double?

b. If you earn 10 percent on your investments, how long will it take for your money to double?

c. At an annual interest rate of 5 percent, how long will it take for your savings to double?

2. A family spends $34,000 a year for living expenses. If prices increase by 4 percent a year for the next three years, what amount will the family need for their living expenses after three years?

3. 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 5 percent.

4. Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $10,000 available each year for various school and living expenses. If he earns 4 percent on his money, how much must be deposit at the start of his studies to be able to withdraw $10,000 a year for three years?