A retirement unit now costs $401,373. Inflation is expected to cause this price to increase at...
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A retirement unit now costs $401,373. Inflation is expected to cause this price to increase at 3% per year over 24 years. 24 is the number of years to retirement. How large an equal annual end of year deposit must be made each year into an account paying an annual interest rate of 10% in order for al retiree to have the cash to purchase a unit at retirement? Tammy Smith wishes to accumulate $57,308 by the end of 12 years by making equal annual end of year deposits over the next 12 years. If Tammy can earn 6% per year on her investment, how much must she deposit at the end of each year to meet this goal? A retirement unit now costs $401,373. Inflation is expected to cause this price to increase at 3% per year over 24 years. 24 is the number of years to retirement. How large an equal annual end of year deposit must be made each year into an account paying an annual interest rate of 10% in order for al retiree to have the cash to purchase a unit at retirement? Tammy Smith wishes to accumulate $57,308 by the end of 12 years by making equal annual end of year deposits over the next 12 years. If Tammy can earn 6% per year on her investment, how much must she deposit at the end of each year to meet this goal?
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Answer Annual amount Future value of retirement acocunt ... View the full answer
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Posted Date:
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