Kelly Yeo plans to buy her own apartment in Singapore in 10 years time when she retires. She has identified a location where house price average at $300,000 at present. She also expect a rise in the house price by 5 percent every year. She plans to have the funds to buy the apartment at the time of her retirement by depositing an equal amount of money every year in bank account that pays 9 percent per annum compound interest. How much does she need to deposit every year in this account to reach to reach her goal at the time of retirement?

Answer rating: 100% (QA)

Step1 Compute FV of house after 10 year Present value 300000 year 9 Growth rate 5 ... View the full answer