Twenty years from now, you would like to purchase a cottage located on the shores of your favourite lake. You expect that you will have $250,000 available at that time for this purchase. You could afford a home that is currently selling for ____ if the homes increase in value by 3% annually, but if the homes increase in value by 5% annually, you can only afford a home priced at _____ today.

Answer rating: 100% (QA)

Present value of money FV 1r N Input FV Future value FV 250000 I Rate of inflation r 3 N ... View the full answer