. You borrow 7,000 dollars to help pay your college expenses. You agree to repay the loan at the end of 4 years at 8% interest compounded quarterly. What is the maturity value of the loan? 2. If inflation causes the cost of automobiles to increase by 2.5% each year. What should a car cost today if it cost 21,000 dollars 5 years ago? 3. Assume you are thinking of buying a house currently priced at 169,000 dollars. If housing prices rise at an annual inflation rate of 3% , estimate the purchase price of a similar house if you wait 4 years before committing yourself to buying one. 4. Suppose when you are 52 years old, the yearly statement you get from the Social Security Administration estimates that your monthly payment at age 66 will be 620 dollars. If inflation stays constant at 2% , what will be the purchasing power of that 620 dollars.
1. You borrow 7,000 dollars to help pay your college expenses. You agree to repay the loan at the end of 4 years at 8% interest compounded quarterly. What is the maturity value of the loan?
2. If inflation causes the cost of automobiles to increase by 2.5% each year. What should a car cost today if it cost 21,000 dollars 5 years ago?
3. Assume you are thinking of buying a house currently priced at 169,000 dollars. If housing prices rise at an annual inflation rate of 3% , estimate the purchase price of a similar house if you wait 4 years before committing yourself to buying one.
4. Suppose when you are 52 years old, the yearly statement you get from the Social Security Administration estimates that your monthly payment at age 66 will be 620 dollars. If inflation stays constant at 2% , what will be the
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