1. Assume you want to buy a house in 5 years. The house price index has risen from 290.4 in 2012 to 354 in 2017. The median house price in Florida is $212,100. Current market Interest rate is 4.12%. How much money should you deposited now to buy a house in 5 years?
2. Explain the importance of considering interest fluctuations in financial planning.
3. You bought a stock six months ago for $82.82 per share. The stock paid no dividends. The current share price is $89.59.
What is the APR and EAR of your investment.