Summer inherits $300,000 from her grandmother, and is trying to decide how much she needs to save. She hopes to leave corporate life in 5 years to open her own yoga studio, and believes it will cost her $125,000 at that time. Assuming she can earn 5% on her investment, how much should she deposit of the inheritance today? Please set up the problem (show your work here), look up the factor and then solve, showing your final answer below.
Summer inherits $300,000 from her grandmother, and is trying to decide how much she needs to save. She hopes to leave corporate life in 5 years to open her own yoga studio, and believes it will cost her $125,000 at that time. Assuming she can earn 5% on her investment, how much should she deposit of the inheritance today? Please set up the problem (show your work here), look up the factor and then solve, showing your final answer below.
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 52P
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Transcribed Image Text:Summer inherits $300,000 from her grandmother, and is trying to decide how much she needs to save.
She hopes to leave corporate life in 5 years to open her own yoga studio, and believes it will cost her
$125,000 at that time. Assuming she can earn 5% on her investment, how much should she deposit of
the inheritance today?
Please set up the problem (show your work here), look up the factor and then solve, showing your final
answer below.
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