7. 8. 9. Use LO3 for this: Assume the total cost of a college education will be $325,000 when your child enters college in 18 years. You presently have $85,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Calculating the Number of Periods (L04] At 4.3 percent interest, how long does it take to double your money? To quadruple it! Calculating Interest Rates [LO3] According to the Census Bureau, in October 2019, the average house price in the United States was $368,600. In October 2000, the average price was $197,700. What was the annual increase in the price of the average house soll? Calculating the Number of Periods [LO4] You're trying to save to buy a new $275,000 Ferrari. You have $50,000 today that can be invested at your bank. The bank pays 4.8 percent annual interest on its accounts. How long will it be before you have enough to buy the car? Present Value Years Interest Rate Future Value $181 8 $317 335 13 1,080 48,000 11 185,382 40,353 25 531,618 Calculating the Number of Periods [LO4] Solve for the unknown number of years in each of the following: LO3 Present Value Years Interest Rate Future Value $ 610 $ 1,389 940 26,350 43,500 7% 8 9 11 1,821 289,715 430,258