Problem
John earns a salary of $40,000 per year, and he expects to receive increases at a rate of 4% per year for the next 30 years. He is purchasing a home for $80,000 at 10.5% for 30 years (under a special veterans' preference loan with 0% down). He expects the home to appreciate at a rate of 6% per year. He will also save 10% of his gross salary in savings certificates that earn 5% per year. Assume that his payments and deposits are made annually. What is the value of each of John's two investments at the end of the 30-year period?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.