Assume the average vehicle selling price in the United States last year was $41,996. The average price 9 years earlier was $29,000

On your ninth birthday, you received $300 which you invested at 4.5 percent interest, compounded annually. Your investment is now worth $756. How old are you today?    A.  age 29 B.  age 30 C.  age 31 D.  age 32 E.  age 33 $756 = $300 × (1 + .045)t; t = 21 years; Age today = 9 + 21 = 30

51.

Assume the total cost of a college education will be $300,000 when your child enters college in 16 years. You presently have $75,561 to invest. What rate of interest must you earn on your investment to cover the cost of your child's college education?    A.  7.75 percent B.  8.50 percent C.  9.00 percent D.  9.25 percent E.  9.50 percent $300,000 = $75,561 (1 + r)16; r = 9 percent

52.	At 8 percent interest, how long would it take to quadruple your money?    A.  16.55 years B.  16.64 years C.  17.09 years D.  18.01 years E.  18.56 years $4 = $1 × (1 + .08)t; t = 18.01 years

53.

Assume the average vehicle selling price in the United States last year was $41,996. The average price 9 years earlier was $29,000. What was the annual increase in the selling price over this time period?    A.  3.89 percent B.  4.20 percent C.  4.56 percent D.  5.01 percent E.  5.40 percent $41,996 = $29,000 × (1 + r)9; r = 4.20 percent