Mr. Andrew wants to buy a house 10 years from now. The price of the property that he is intending to buy cost N$ 1.5 million now. The inflation per year is estimated to be 5.1%, 5.3%, 5.7%, 5%, and 4.5% for the next five years and expected to remain at 4.4% for the next five years. If Andrew starts an annuity savings scheme which offers an interest of 6% per annum, then to buy the house at the end of the 10th year, what amount of money that Mr. Andrew has to save every month in the savings scheme? What will be the future value of the property with respect to the inflation?

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Required solution Current Cost of property C 15 million 15 x 1000000 1500000 i1 inflation for year 1 ... View the full answer