Megan Murray wishes to buy a boat in five years that presently costs $150,000.  She expects the cost of the boat to increase due to inflation by 3% per year for the next two years and 4% per year the following three years.  She also wants to spend $50,000 per year for 6 years beginning at the end of 10 years from today. 

How much must she save each year for the next 5 years if she can earn 6% on her investments?

Answer rating: 100% (QA)

To calculate the amount Megan must save each year for the next 5 years we can use the present value ... View the full answer