You are looking to buy a home in the future in exactly 15 years. The house is valued today at $200,000 and is expected to increase in price at 3% compounded annually. You want to set aside annual monthly payments to purchase the house in cash at the end of year 15. 

What would be the annual amount to set aside (invest) assuming a 12% rate of return so that you can purchase the business in cash when the year is completed?

Answer rating: 100% (QA)

To calculate the annual amount you need to set aside and invest at a 12 rate of return to purchase t... View the full answer