1. Calculate the future value of $2,500 invested at 8% for 20 years. Calcualte the total interest earned, the total simple interest and the total compound interest.
2. An asset has an average return of 10.67 percent and a standard deviation of 20.62 percent. What range of returns should you expect to see with a 95 percent probability?
3. Frank Beamer and his wife Louisa have owned and lived in their personal residence for ten years. They purchased the home for $300,000. They sell the home for $900,000. How much of the gain is taxable?