Answered: If Edward wants to earn $215,000 within…

If Edward wants to earn $215,000 within the next 20 years and the salaries grow at 4.15% per year, what salary should he start at to reach his goal? (Round your answer to the nearest whole number.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 35P

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

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If Edward wants to earn $215,000 within the next 20 years and the salaries grow at 4.15% per year, what salary should he start at to reach his goal? (Round your answer to the nearest whole number.)

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