Your grandmother bought you a lottery ticket, and you won $1,000 a month for life. You send your grandmother the biggest and most expensive flowers you can find and promise to spend $150 every month on a nice dinner with her. With the remaining monthly amount, you wonder if, rather than spending it, should you instead save $850 of it to buy the sailboat shown here, as you have always dreamed of being able to take your friends and family sailing. You have $20,000 already set aside in your savings account that earns 2.5% compounded quarterly. The owner of the sailboat has said she is happy to keep the sailboat for her own use for up to 4 years and sell it to you at that time at the price showing on the listing. 

Should you commit to this deal, or is it infeasible? If it's not feasible, what can do to make it feasible? Assume you will be able to put the monthly savings into an account that earns 2.5% compounded quarterly

Answer rating: 100% (QA)

Should you commit to the deal Whether or not this deal is feasible for you depends on several factors and its a close call Heres a breakdown of the pr... View the full answer