2. These cash flow transactions are said to be equivalent in terms of economic desirability at an interest rate of 6% compounded annually. Determine the unknown value A. 500 400 300 A A A A 200 A 100 -2-3- Cash Flow 1 Cash Flow 2

What is deflation?

What is a capital gain?

A mortgage 105m is a loan that a person makes to purchase a house. Table 19.11 provides a list of the mortgage interest rate for several different years and the rate of inflation for each of those years. In which years would it have been better to be a person borrowing money from a bank to buy a home? In which years would it have been better to be a bank lending money?

Is investing in housing always a very safe investment?

What are the two key choices U.S. citizens need to make that determines their relative wealth?

How is buying a house to live in a type of financial investment?

Which has a higher average return over time: stocks, bands, or a savings account? Explain your answer.

What does a share of stock represent?