Question

Southgate University currently has a 10,000 car parking capacity for its students. This 

year, there were 5700 parking passes issued, and the student population is expected to 

grow at 8% per year. How long will it be before the university will need to expand its 

parking capacity?

3. Stanceton University charges $24000 a year in graduate tuition. Tuition rates are growing 

at 3.5% per year. If you plan to go to graduate school in two years, what would you expect 

to pay in the first year in tuition?

4. You just won the lottery and want to put some money away for your child's college 

education. College will cost $65,000 in 18 years. You can earn 8% compounded annually. 

How much do you need to invest today?

5. What is the total future value six years from now of $50 received in one year, $200 received 

in two years, and $800 received in six years if the annual rate of return is 8.00%?

6. You need $2,000 to buy a new stereo for your car. If you have $800 to invest at 5% 

compounded annually, how long will you have to wait to buy the stereo?

7. What is the value today of $5,000 received 5 years from now at in annual interest rate of 6% compounded monthly?