After not winning a new helicopter on The Price is Right, you have decided to offset the disappointment by purchasing a used boat. However, you need to save up a bit more money in order to make your purchase. Today, the used helicopter is selling for $25,000 and its price will increase 8% annually. You have $6,000 in your savings account now, which you will convert into Bitcoin. You expect Bitcoin to increase by 10% annually. Your goal is to buy the helicopter in five years. To meet this goal, you will invest the same amount of money each year in Bitcoin, starting one year from today and ending in the 5th year (i.e., you make 5 annual investments). 

What should be your annual investment amount?

Answer rating: 100% (QA)

To calculate the annual investment amount needed to buy the helicopter in five years we can use th... View the full answer