Quiz 1 - 1. Housing values are appreciating at a rate of 3...

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1.  Housing values are appreciating at a rate of 3 percent a year. Approximately how much will your $100,000  house be worth in 10 years if this rate of appreciation continues? A) $146,320 B) $174,410 C) $155,080 D) $134,390 Feedback:  p 16 Points Earned:  1.0/1.0  Correct Answer(s): 2.  ______ is the current value of an asset that will be received in the future. A) Inflation B) A benefit C) Present value D) Salary Feedback:  p 17 Points Earned:  1.0/1.0  Correct Answer(s):
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3.  When the consumer price index rises 6 percent, purchasing power of the dollar A) falls 5.7 percent. B) rises 6.0 percent. C) falls 6.0 percent. D) rises 5.7 percent. Feedback:  The previous base divided by the new CPI 1/1.06, or 94.3%. The dollar falls by the reciprocal of this  amount, or 1-94.3% = 5.7%. See page 10. Points Earned: 
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This note was uploaded on 03/01/2010 for the course FNBK 30102E taught by Professor Hanevy during the Spring '09 term at Buena Vista.

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Quiz 1 - 1. Housing values are appreciating at a rate of 3...

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