James Horner is considering an investment scheme, to fund his house purchase at the end of...

  

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James Horner is considering an investment scheme, to fund his house purchase at the end of year 6 with following cash deposits in respective years. All deposits take place at the beginning of the year. 6 3 4 5 12,000 14,000 16,000 18,000 20,000 Year 1 2 Cash deposit (S) 10,000 The rate of interest on the deposits is 9% per annum. If James requires an amount of $115,000 at the end of year 6 to purchase the property, how much will be the shortfall or surplus of this investment scheme? James Horner is considering an investment scheme, to fund his house purchase at the end of year 6 with following cash deposits in respective years. All deposits take place at the beginning of the year. 6 3 4 5 12,000 14,000 16,000 18,000 20,000 Year 1 2 Cash deposit (S) 10,000 The rate of interest on the deposits is 9% per annum. If James requires an amount of $115,000 at the end of year 6 to purchase the property, how much will be the shortfall or surplus of this investment scheme?

Answer rating: 100% (QA)

To calculate the shortfall or surplus of James Horners investment scheme we need to calculate the ac... View the full answer