A 24-year-old December 2012 graduate wants the equivalent of ($2,500,000) in January 1, 2013, buying power to
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A 24-year-old December 2012 graduate wants the equivalent of \($2,500,000\) in January 1, 2013, buying power to be available exactly 40 years later on January 1, 2053. He plans to make his first investment of \($Z\) on January 1, 2014, and every year thereafter, with the last payment of \($Z\) on January 1, 2053. He can earn 8 percent on his money and expects inflation to run 5 percent.
a. How many actual dollars will there be in his account immediately after his last deposit?
b. What is \($Z?\)
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Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
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