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5. Calculating Interest Rates [LO3] Assume the total cost of a college education will be $290,000 when your child enters college in 18 years. You
5. Calculating Interest Rates [LO3] Assume the total cost of a college education will be $290,000 when your child enters college in 18 years. You presently have $55,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? 6. Calculating Future Values [LO1] Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2057 , assuming they appreciate at a 4.5 percent annual rate? 7. Valuing Bonds What is the price of a 15-year, zero coupon bond paying $1,000 at maturity if the YTM is: 75.percent 80 percent 90 percent
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