Fourteen years ago, your parents set aside $7,500 to help fund your college educ

Question

Fourteen years ago, your parents set aside $7,500 to help fund your college education. Today, that fund is valued at $26,180. What rate of interest is being earned on this account? Question 6 options: A) 7.99 percent B) 8.36 percent C) 8.51 percent D) 9.34 percent E) 10.06 percent You collect old coins. Today, you have two coins each of which is valued at $250. One coin is expected to increase in value by 6 percent annually while the other coin is expected to increase in value by 4.5 percent annually. What will be the difference in the value of the two coins 15 years from now? Question 1 options: A) $115.32 B) $208.04 C) $241.79 D) $254.24 E) $280.15

Explanation / Answer

1)26180 = 7500(1+r)^14 r = 10.06 % 2)250(1+6/100)^15 - 250(1+4.5/100)^15 250*2.39 - 250*1.935 = 115.32

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