our sister just deposited $5,000 Into an investment account. She belleves that she will earn an annual return of 8.7 percent for the next 5 years. You believe that you will only be able to earn an annual return of 7.8 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 5 years?
our sister just deposited $5,000 Into an investment account. She belleves that she will earn an annual return of 8.7 percent for the next 5 years. You believe that you will only be able to earn an annual return of 7.8 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 5 years?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 10P
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Your sister just deposited $5,000 Into an investment account. She belleves that she will earn an annual return of 8.7 percent for the next 5 years. You believe that you will only be able to earn an annual return of 7.8 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 5 years?
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