1. Jose Garcia's lifelong dream is to own a fishing boat to use in hisretirement. Jose has  recently come into an inheritance of $400,000. He estimatesthat the boat he wants will cost $300,000 when he retires in 5 years. How much of his inheritance must he invest at an annual rate of 8% compounded annually) to buy the boat at retirement? 2. Refer to the data in BE6.7. Assuming quarterly compounding of amounts invested at 8%, how much of Jose Garcia's in heritance must be invested to have enough at retirement to buy the boat?

Question

1. Jose Garcia's lifelong dream is to own a fishing boat to use in hisretirement. Jose has  recently come into an inheritance of $400,000. He estimatesthat the boat he wants will cost $300,000 when he retires in 5 years. How much of his inheritance must he invest at an annual rate of 8% compounded annually) to buy the boat at retirement?

2. Refer to the data in BE6.7. Assuming quarterly compounding of amounts invested at 8%, how much of Jose Garcia's in heritance must be invested to have enough at retirement to buy the boat?

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