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1.Assume that you just invested $10,723 in an investment account for your new-born child's college...

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Finance

1.Assume that you just invested $10,723 in an investment account for your new-born child's college fund. Your goal is to grow the fund to $100,000 in 18 years. What is the required average rate of return per year from this account necessary to achieve your goal?

2.If a savings account pays 7% p.a. the interest rate, how much money do you need to deposit to accumulate $71,080 in 9 years? Note that the bank will compound interest monthly.

3.Currently, you have $750,375 in your IRA account and want to retire when its balance becomes $3 million. If you can earn 10% p.a. return, in how many years can you retire?

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