Reference no: EM132483226

Question 1.) Assume the total cost of a college education will be $365,000 when your child enters college in 18 years. You presently have $59,000 to invest.

What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Annual Rate %

Question 2.) Solve for the unknown number of years in each of the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Present Value Years                    Interest Rate                      Future Value

$ 950                                            8%                             $1,805

$2,641                                         6%                              $4,400

$34,205                                       11%                           $394,120

$33,900                                       18%                            $219,380

Question 3.) Solve for the unknown interest rate in each of the following: (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Present Value  Years           Interest Rate                     Future Value

$780                7                                                        $1,511

$970                 8                                                         $1,848

$21,500            19                                                      $148,332

$76,800               22                                                    $325,815

Question 4.) For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Present Value             Years                  Interest Rate                      Future Value

                                     11                5%                               $19,028

                                   3                   10%                               $43,217

                                  15                     13%                           $807,382

                                20                          12%                         $664,816

Question 5.) For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Present Value           Years                Interest Rate             Future Value

$2,250                         9                       18%

$10,253                         22                     6%

$107,305                      16                        11%

$245,382                   28                                 5%