Using the Rule of 72, approximate the following amounts. a. If the value of land in an area is increasing 12.5 percent a year, how long will it take for property values to double? (Round your answer to 1 decimal place.) Time period years b. If you earn 11.5 percent on your investments, how long will it take for your money to double? (Round your answer to 1 decimal place.) Time period years c. At an annual interest rate of 5.75 percent, how long will it take for your savings to double? (Round your answer to 1 decimal place.) In 2013, selected automobiles had an average cost of $16,000. The average cost of those same automobiles is now $18,720. What was the rate of increase for these automobiles between the two time periods? (Round your answer to the nearest whole percent.) Rate of increase % A family spends $56,000 a year for living expenses. If prices increase 5 percent a year for the next four years, what amount will the family need for their annual living expenses after four years? Only use the FV factor values obtained in Exhibit 1-A to calculate this solution. (Round your FV factor to 3 decimal places and final answer to the nearest whole dollar.) Future living expenses What would be the yearly earnings for a person with $3,000 in savings at an annual interest rate of 3 percent? Yearly earnings Ben Collins plans to buy a house for $164,000. If the real estate in his area is expected to increase in value by 3 percent each year, what will its approximate value be seven years from now? Use Exhibit 1-A. (Round your FV factor to 3 decimal places and final answer to the nearest whole dollar.) Future value of the house If you desire to have $13,000 for a down payment for a house in eight years, what amount would you need to deposit today? Assume that your money will earn 4 percent. Use Exhibit 1-C. (Round your PV factor to 3 decimal places and final answer to the nearest whole dollar.) Deposit Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $9,000 available each year for various school and living expenses. Use Exhibit 1-D. If he earns 6 percent on his money, how much must he deposit at the start of his studies to be able to withdraw $9,000 a year for three years? (Round PVA factor to 3 decimal places and final answer to the nearest whole dollar.) Deposit Carla Lopez deposits $2,600 a year into her retirement account. If these funds have an average earnings of 7 percent over the 40 years until her retirement, what will be the value of her retirement account at the time she retires? Use Exhibit 1-B. (Round your FVA factor to 3 decimal places and final answer to the nearest whole dollar.) Future value of retirement account If a person spends $20 a week on coffee (assume $1,000 a year), what would be the future value of that amount over 6 years if the funds were deposited in an account earning 5 percent? Use Exhibit 1-B. (Round your FVA factor to 3 decimal places and final answer to the nearest whole dollar.) Future value