Homework 1

Answer the aftercited questions: Calculating the advenient estimate of nature. Ben Collins plans to buy a  house for $220,000. If that genuine fortune is expected to growth in  estimate by 3 percent each year, what get its approach estimate be seven  year from now?   Using the Administration of 72. Using the administration of 72, approach the aftercited wholes: If the estimate of place in an area is increasing 6 percent a year, how hanker get it transfer for nature estimates to envelop? If you obtain 10 percent on your investments, how hanker get it transfer for your currency to envelop? At an annual concern trounce of 5 percent, how hanker get it transfer for your savings to envelop?   Determining the inflation trounce. In 2006, separated automobiles had an  mean consume of $16,000. The mean consume of those identical automobiles is  now $28,000. What was the trounce of growth for these automobiles among  the two period periods?   Computing the Period Estimate of Money. Using period estimate f currency boards, reckon the aftercited: The advenient estimate of $450 six years from now at 7 percent. The advenient estimate of $900 saved each year for 10 years at 8 percent. The whole a peculiar would feel to ease today (exhibit estimate) at a 6 percent concern trounce to feel $1,000 five years from now. The whole a peculiar would feel to ease today to be powerful to transfer  out $600 a year for 10 years from an statement obtaining 8 percent.   Calculating the Exhibit Estimate of a Series. Pete Morton is planning  to go to graduate instruct in a program of con-over that get transfer three  years. Pete wants to feel $15,000 availpowerful each year for several instruct  and patronage expenses. If he obtains 4 percent on his currency, how fur must  be easeed at the set-out of his studies to be powerful to retire $15,000 a  year for three years?   Determining a Loan Liquidation Amount. If you hypothecate $8,000 after a while a 5  percent concern trounce, to be repaid in five correspondent per-annum liquidations, what  would be the whole of each liquidation? (Note: Use the exhibit estimate of an  annuity board.)