Reference no: EM132443343

1. Cedric bought some land costing $49,850. Today that same land is valued at $83,000. How long has Cedric owned this land if the price of land has been increasing at 4 percent per year?

2.Twenty-five years ago, your father invested $10,000. Today that investment is worth $211,836. What is the average rate of return your father earned on his investment?

3. Alpha, Inc. is saving money to build a new factory. Six years ago they set aside $250,000 for this purpose. Today, that account is worth $306,958. What rate of interest is Alpha earning on this money?

4. On your tenth birthday, you received $100 which you invested at 4.5 percent interest, compounded annually. That investment is now worth $3,000. How old are you today?

5. Some time ago, Julie purchased eleven acres of land costing $36,900. Today, that land is valued at $214,800. Approximately, how long has she owned this land if the price of the land has been increasing at 6 percent per year?

6. Arnold Ziffle established a trust fund that provides $75,000 in scholarships each year for worthy students. The trust fund earns a 5 percent rate of return. How much money did Ziffle contribute to the fund assuming that only the interest income is distributed?

7. Today, you signed loan papers agreeing to borrow $4,954.85 at 9 percent compounded monthly. The loan payment is $143.84 a month. How many loan payments must you make before the loan is paid in full?

8. You estimate that you will owe $45,300 in student loans by the time you graduate. The interest rate is 4.25 percent. If you want to have this debt paid in full within ten years, how much must you pay each month?