2. At an annual interest rate of five percent, how long would it take for your savings to double?
3. In the mid-1990s, selected automobiles had an average cost of $ 12,000. The average cost of those same motor vehicles is now $ 20,000. What was the rate of increase for this item between the two time periods?
4. A family spends $ 28,000 a year for living expenses. If prices increase by 4 percent a year for the next three years, what amount will the family need for its living expenses?
5. What would be the yearly earnings for a person with $ 6,000 in savings at an annual interest rate of 5.5 percent?
6. Elaine Romberg prepares her own income tax return each year. A tax preparer would charge her $ 60 for this service. Over a period of 10 years, how much does Elaine gain from preparing her own tax return? Assumes she can earn 3 percent on her savings.
7. Tran Lee plans to set aside $ 1,800 a year for the next six years, earning 4 percent. What would be the future value of this savings amount?
8. If you borrow $ 8,000 with a 5 percent interest rate to be repaid in five equal payments at the end of the next five years, what would be the amount of each payment?( Note: Use the present value of an annuity table in the Chapter Appendix.)
9. Based on the following data, compute the total assets, total liabilities, and net worth.
Liquid assets, $ 3,670 Household assets, $ 89,890 Investment assets, $ 8,340 Long-term liabilities, $ 76,230