Robert is interested in purchasing a second home overlooking a mountain lake. He believes that they...
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Robert is interested in purchasing a second home overlooking a mountain lake. He believes that they should buy this home soon, make payments while they are working, use it for vacations, and move into the house permanently once they retire. If they need a down payment of $35,500, how much should they save annually over the next 7 years? Assume that they can earn 7% on their annual savings. (Round answer to 2 decimal places, e.g. 52.75. Do not round intermediate calculations.) They should save $ annually over the next 7 years. Robert is interested in purchasing a second home overlooking a mountain lake. He believes that they should buy this home soon, make payments while they are working, use it for vacations, and move into the house permanently once they retire. If they need a down payment of $35,500, how much should they save annually over the next 7 years? Assume that they can earn 7% on their annual savings. (Round answer to 2 decimal places, e.g. 52.75. Do not round intermediate calculations.) They should save $ annually over the next 7 years.
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To calculate the annual savings needed we can use the future value of an ordi... View the full answer
Related Book For
Introduction to Management Science A Modeling and Cases Studies Approach with Spreadsheets
ISBN: 978-0078024061
5th edition
Authors: Frederick S. Hillier, Mark S. Hillier
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