You and your spouse are saving money to purchase your dream house when you retire in...

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You and your spouse are saving money to purchase your dream house when you retire in 15 years. Currently, the house costs $150,000 and you expect it to appreciate at a 3% annual rate of inflation. In order to pay cash for the house when you retire in 15 years, you've set up a savings account that pays 5% compounded annually. How much will you have to deposit in the savings account at the end of each year in order to be able to buy the house for cash when you retire fifteen years from now? You and your spouse are saving money to purchase your dream house when you retire in 15 years. Currently, the house costs $150,000 and you expect it to appreciate at a 3% annual rate of inflation. In order to pay cash for the house when you retire in 15 years, you've set up a savings account that pays 5% compounded annually. How much will you have to deposit in the savings account at the end of each year in order to be able to buy the house for cash when you retire fifteen years from now?

Answer rating: 100% (QA)

ANSWER To calculate the amount that needs to be deposited at the end of each year we need to determi... View the full answer