Giving the following cash flow diagram. Find the future worth using an interest rate of 10% per quarter. 0 1 2 3 4 $40 $40 $40 5 6 7 8 Years $70 $70 $70

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

You open a 5-year CD for 1,000 that pays 2 interest, compounded annually. What is the value of that CD at the end of the five years?

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?

What is a mutual fund?

What are some ways that someone looking for a loan might reassure a bank that is faced with imperfect information about whether the borrower will repay the loan?

What is a capital gain?

If you receive 500 in simple interest on a loan that you made for 10,000 for five years, what was the interest rate you charged?

What does a share of stock represent?

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