Price of the land has been increasing

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Reference no: EM13883400

1. Some time ago, Vanessa purchased eleven acres of land costing $58,500. Today, that land is valued at $253,167. How long has she owned this land if the price of the land has been increasing at 9% per year?

2. On your ninth birthday, you received $500 which you invested at 4% interest, compounded annually. Your investment is now worth $1,185. How old are you today?

3. Assume the total cost of a college education will be $200,000 when your child enters college in 15 years. You presently have $80,000 to invest. What rate of interest must you earn on your investment to cover the cost of your child's college education?

Reference no: EM13883400

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