Miss Balqis wishes to purchase a cottage located in a rural area in 12 years when she retires in Malaysia. She is planning to buy the cottage using the proceeds from the sale of her condominium located at Cheras that is currently valued at RM380,000. The value of the condominium in Cheras is expected to rise by 7% per year. The cottage is currently worth RM1,200,000 increasing at 5% per year. In addition to the value of her condominium, how much additional money should she deposit at the beginning of each year in an investment paying 6.6 % annual interest in order to be able to purchase the cottage upon retirement?
Miss Balqis wishes to purchase a cottage located in a rural area in 12 years when she retires in Malaysia. She is planning to buy the cottage using the proceeds from the sale of her condominium located at Cheras that is currently valued at RM380,000. The value of the condominium in Cheras is expected to rise by 7% per year. The cottage is currently worth RM1,200,000 increasing at 5% per year. In addition to the value of her condominium, how much additional money should she deposit at the beginning of each year in an investment paying 6.6 % annual interest in order to be able to purchase the cottage upon retirement?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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Miss Balqis wishes to purchase a cottage located in a rural area in 12 years when she retires in Malaysia. She is planning to buy the cottage using the proceeds from the sale of her condominium located at Cheras that is currently valued at RM380,000. The value of the condominium in Cheras is expected to rise by 7% per year. The cottage is currently worth RM1,200,000 increasing at 5% per year. In addition to the value of her condominium, how much additional money should she deposit at the beginning of each year in an investment paying 6.6 % annual interest in order to be able to purchase the cottage upon retirement?
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