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Present Value Years Interest Rate Future Value $3,150 6 13% 6558.148021 $8,453 19 7% 30570.50725 $89,305 13 9% 273791.6809 $227,382 21 5% 633477.7457 Chapter 4

Present Value Years Interest Rate Future Value
$3,150 6 13% 6558.148021
$8,453 19 7% 30570.50725
$89,305 13 9% 273791.6809
$227,382 21 5% 633477.7457
Chapter 4 Problem 3
Present Value Years Intrest Rate Future Value
15 4% $1,381
8 9% $1,718
13 12% $141,832
25 11% $312,815
Chapter 4 Problem 4
Present Value Years Interest Rate Future Value
$715 9 $1,381
$905 6 $1,718
$15,000 21 $141,832
$70,300 18 $312,815
Chapter 4 Problem 5
Present Value Years Interest Rate Future Value
$195 9% $1,105
$2,105 7% $3,700
$47,800 12% $387,120
$38,650 19% $198,212
Chapter 4 Problem 6

Calculate the rates of return. Assume the total of a college education will be $280,000 when your child enters college in 18 years. You presently have $45,000 to invest. What annual rate of interst must you earn on your investment to cover the cost of your childs college education?

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