Using the time value of money Helen wants to take the next four years off work to travel around the world. She estimates her annual cash needs at $31,000 (if she needs more, she will work odd jobs). Helen believes she can invest her savings at 10% until she depletes her funds. Requirements How much money does Helen need now to fund her travels? After speaking with a number of banks, Helen learns she will only be able to invest her funds at 6°/0. How much does she need now to fund her travels?
Using the time value of money Helen wants to take the next four years off work to travel around the world. She estimates her annual cash needs at $31,000 (if she needs more, she will work odd jobs). Helen believes she can invest her savings at 10% until she depletes her funds. Requirements How much money does Helen need now to fund her travels? After speaking with a number of banks, Helen learns she will only be able to invest her funds at 6°/0. How much does she need now to fund her travels?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 10P
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Question
Using the time value of money
Helen wants to take the next four years off work to travel around the world. She estimates her annual cash needs at $31,000 (if she needs more, she will work odd jobs). Helen believes she can invest her savings at 10% until she depletes her funds.
Requirements
- How much money does Helen need now to fund her travels?
- After speaking with a number of banks, Helen learns she will only be able to invest her funds at 6°/0. How much does she need now to fund her travels?
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