A father is trying to save for his daughter’s wedding in two years. (Long engagement!). He thinks he can make the following contributions to an account: $14,545.00 today and $13,130.00 in one year. The father thinks he can earn 7.00% in the market each of the next two years. If the wedding is expected to cost $52,815.00 two years from today, how much will he need to contribute at the time of the wedding to cover its cost?
A father is trying to save for his daughter’s wedding in two years. (Long engagement!). He thinks he can make the following contributions to an account: $14,545.00 today and $13,130.00 in one year. The father thinks he can earn 7.00% in the market each of the next two years. If the wedding is expected to cost $52,815.00 two years from today, how much will he need to contribute at the time of the wedding to cover its cost?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A father is trying to save for his daughter’s wedding in two years. (Long engagement!). He thinks he can make the following contributions to an account: $14,545.00 today and $13,130.00 in one year. The father thinks he can earn 7.00% in the market each of the next two years. If the wedding is expected to cost $52,815.00 two years from today, how much will he need to contribute at the time of the wedding to cover its cost?
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