Problem 4-5 Calculating the Number of Periods [LO 4]

Solve for the unknown number of years in each of the following (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16)):

Present Value				Years			Interest Rate				Future Value
	$	400						12	%			$	1,255
		2,091						10					3,850
		33,105						15					388,620
		32,800						22					202,748

Problem 4-6 Calculating Rates of Return [LO 3]

Assume the total cost of a college education will be $390,000 when your child enters college in 18 years. You presently have $64,000 to invest.

Required:

What annual rate of interest must you earn on your investment to cover the cost of your child