You are planning to buy your dream mansion and for that you have decided to make 3 independent investments with your savings money in the next 44 years. You plan to invest $4,100 at the end of each year for the first 17years, $6,900 at the end of each year for the following 11 years, $14,500 at the end of each year for the last 16 years. You believe you will earn an effective annual rate of return of 9.7% on your investment. If the price of your dream mansion will be $1,000,000 after 44 years, will you be able to fulfill your dream with those 3 investments?
You are planning to buy your dream mansion and for that you have decided to make 3 independent investments with your savings money in the next 44 years. You plan to invest $4,100 at the end of each year for the first 17years, $6,900 at the end of each year for the following 11 years, $14,500 at the end of each year for the last 16 years. You believe you will earn an effective annual rate of return of 9.7% on your investment. If the price of your dream mansion will be $1,000,000 after 44 years, will you be able to fulfill your dream with those 3 investments?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
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You are planning to buy your dream mansion and for that you have decided to make 3 independent
investments with your savings money in the next 44 years. You plan to invest $4,100 at the end of each
year for the first 17years, $6,900 at the end of each year for the following 11 years, $14,500 at the end of
each year for the last 16 years. You believe you will earn an effective annual
your investment. If the price of your dream mansion will be $1,000,000 after 44 years, will you be able
to fulfill your dream with those 3 investments? (5)
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