# Suppose you want to save money to pay for a down payment on an apartment in 5 years time. One

## Question:

Suppose you want to save money to pay for a down payment on an apartment in 5 years’ time. One year from now, you will invest your $30,000 yearend bonus for the down payment. If you can invest at 15% per year, how much interest will you receive on your cash in 5 years? If you need $210,000 for the down payment, and you would like to top-up the remaining amount by investing a lump sum today, what is the amount you should invest?

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**Related Book For**

## Principles Of Managerial Finance

**ISBN:** 9781292018201

14th Global Edition

**Authors:** Lawrence J. Gitman, Chad J. Zutter

**Question Details**

Chapter #

**5**- Time Value of MoneySection: Problems

Problem: 14

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