Assume the total cost of a college education will be $300,000 when your child enters college in 16 years. You presently have $75, 561 to invest. What rate of interest must you earn on your investment to cover the cost of your child's college education? Assume the average vehicle selling price in the United States last year was $41, 996. The average price 9 years earlier was $29,000. What was the annual increase in the selling price over this time period? You're trying to save to buy a new $160,000 Ferrari. You have $56,000 today that can be invested at your bank. The bank pays 6 percent annual interest on its accounts. How many years will it be before you have enough to buy the car? Assume the price of the car remains constant. Imprudential, Inc. has an unfunded pension liability of $850 million that must be paid in 25 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. The relevant discount rate is 6.5 percent. What is the present value of this liability? You invested $10,000 at 8% that is compounded continuously, what is the future value 9 years from now? You invested $5,000 at X% that is compounded continuously 10 years from now. The value of your investment today is $8,000. What is the rate of returns for your investment