Question: Problem 1. [8 pts, 4 each] A. If Talaga's total assets have increased from $15,000 to $18,000 and his liabilities from $5,000 to $9,000, by

Problem 1. [8 pts, 4 each] A. If Talaga's total assets

Problem 1. [8 pts, 4 each] A. If Talaga's total assets have increased from $15,000 to $18,000 and his liabilities from $5,000 to $9,000, by how much has Talaga's net worth increased? (Show your calculations) B. Angela won a lottery and was given the following choices. She could either take $8,000 at the end of each month for 30 years, or a lump sum of $1,880,000 today. Assuming daily compounding at approximately what interest rate (per year) would she be indifferent between the two choices? (Show your calculations suggestion you can use financial calculator to solve this problem, and make sure to show your inputs.)

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