Homework 1

Answer the aftercited questions: Calculating the coming estimate of resources. Ben Collins plans to buy a  house for $220,000. If that developed estate is expected to acception in  estimate by 3 percent each year, what obtain its near estimate be seven  year from now?   Using the Administration of 72. Using the administration of 72, near the aftercited quantitys: If the estimate of place in an area is increasing 6 percent a year, how covet obtain it captivate for resources estimates to envelop? If you acquire 10 percent on your investments, how covet obtain it captivate for your coin to envelop? At an annual attention blame of 5 percent, how covet obtain it captivate for your savings to envelop?   Determining the inflation blame. In 2006, chosen automobiles had an  mean consume of $16,000. The mean consume of those corresponding automobiles is  now $28,000. What was the blame of acception for these automobiles between  the two span periods?   Computing the Span Estimate of Money. Using span estimate f coin consultations, reprove the aftercited: The coming estimate of $450 six years from now at 7 percent. The coming estimate of $900 saved each year for 10 years at 8 percent. The quantity a peculiar would bear to guard today (offer estimate) at a 6 percent attention blame to bear $1,000 five years from now. The quantity a peculiar would bear to guard today to be cogent to captivate  out $600 a year for 10 years from an recital acquireing 8 percent.   Calculating the Offer Estimate of a Series. Pete Morton is planning  to go to graduate instruct in a program of consider that obtain captivate three  years. Pete wants to bear $15,000 availcogent each year for multitudinous instruct  and influence expenses. If he acquires 4 percent on his coin, how abundantly must  be guarded at the set-out of his studies to be cogent to retreat $15,000 a  year for three years?   Determining a Loan Reimbursement Amount. If you borrow $8,000 after a while a 5  percent attention blame, to be repaid in five correspondent annually reimbursements, what  would be the quantity of each reimbursement? (Note: Use the offer estimate of an  annuity consultation.)