Problem 4-18 Calculating Future Values (LO 1] You have just made your first $5,000 contribution to your individual retirement account. Assume you earn an annual return of 10.8 percent and make no additional contributions. a. What will your account be worth when you retire in 44 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Account value if you start now b. Account value if you wait 10 years Problem 4-6 Calculating Rates of Return (LO 3) Assume the total cost of a college education will be $385,000 when your child enters college in 15 years. You presently have $63,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Annual rate 4.24 %