2. You want to buy a Volvo in 4 years, after you graduate from college. The car is currently selling for $35,000, and the price will increase at a rate of 5% per year. Your friend, Bob, introduces to you a one-time chance to earn 14% per year over the next 4 years. And you want to grab this chance to plan for your purchase. How much do you need to invest today so that you are able to buy your dream car after graduation?

3. Your great aunt invested $10,000 in an account in your name several years ago. The account has paid an average annual rate of 6.8 percent. Today, the account is worth $85,393. How long ago was this money invested for your benefit?

4. This morning, you purchased a rare coin for $42,600. The coin has been appreciating in value at an annual rate of 6.9 percent and is expected to continue doing so. How long will it be until the coin is worth $100,000?