Q7

LO 3 6. Calculating Rates of Return Assume the total cost of a college education will be $235,000 when your child enters college in 18 years. You presently have $53,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? LO4 7. Calculating the Number of Periods At 5.3 percent interest, how long does it take to double your money? To quadruple it? LO 3 8. Calculating Rates of Return In 2018, one of the first copper pennies struck at the Philadelphia mint in 1793 was sold for $300,000. What was the rate of return on this investment? LO 4 9. Calculating the Number of Periods You're trying to save to buy a new $175,000 Ferrari. You have $35.000 today that can be invested at your bank. The bank pays 2.9 percent annual interest on its accounts. How long will it be before you have enough to buy the car