Q1 Calculating Interest Rates Assume the total cost of a university education will be 290,000 when your child enters college in 18 years. You currently have 40,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your childs university education?

Q2 Simple Interest versus Compound Interest [LO1]First City Bank pays 8 per cent simple interest on its savings account balances, whereas Second City Bank pays 8 per cent interest compounded annually. If you made a 10,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years?

Q3Calculating the Number of Periods [LO4]At 6 per cent interest, how long does it take to double your money? To quadruple it?