You have 50,000 invested in an account paying 3.50. If you just ...

[jon_i]

You have 50,000 invested in an account paying 3.50. If you just finished paying your total college expenses for the coming year and your college costs 19,000 per year, how many years will your money last?
 
  Treat your costs like an annuity with the first payment one year from today.) Use a financial calculator.
  What will be an ideal response?

Question 2

In its first year of operations, 1980, the Gourmet Cheese Shoppe had earning per share of 0.26. Four years later, in 1984, EPS was up to 0.38, and 7 years after that, in 1991, EPS was up to 0.535.
 
  It appears that the first four years represented a supernormal growth situation and since then a more normal growth rate has been sustained. What are the rates of growth for the earlier period and for the later period? (Round to the nearest whole number)
  A) 6; 5
  B) 6; 3
  C) 10; 8
  D) 10; 5
  E) 12; 7

[bdobbins]

Answer to Question 1

Answer: The financial calculator makes short work of this problem.
MODE = END
INPUT ? 3.50 -50,000 19,000 0
KEY N I/Y PV PMT FV
CPT 2.81

For those who like to work for their answers:

n = = = 2.81 years.
Explanation: Use a financial calculator or a spreadsheet.

Answer to Question 2

D