For the break of Thanksgiving to Christmas On June 1 2023 Cost of trip $5,000 Sweeden On June 1 2025 and June 1 2026 & June 1 2027 and June 1 2032 Cost for each trip is $7,000 June 1 2037 cost of trip $4,500 and $4950. Assume 8% annual interest rate through out What are the investment rents that need to make on 6/1/2021 and 6/1/2022 if they need to have $30,000 saved on 6/1/2023 to fund future trips? Thank you Brenda
For the break of Thanksgiving to Christmas On June 1 2023 Cost of trip $5,000 Sweeden On June 1 2025 and June 1 2026 & June 1 2027 and June 1 2032 Cost for each trip is $7,000 June 1 2037 cost of trip $4,500 and $4950. Assume 8% annual interest rate through out What are the investment rents that need to make on 6/1/2021 and 6/1/2022 if they need to have $30,000 saved on 6/1/2023 to fund future trips? Thank you Brenda
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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For the break of Thanksgiving to Christmas
On June 1 2023 Cost of trip $5,000 Sweeden
On June 1 2025 and June 1 2026 & June 1 2027 and June 1 2032 Cost for each trip is $7,000
June 1 2037 cost of trip $4,500 and $4950.
Assume 8% annual interest rate through out
What are the investment rents that need to make on 6/1/2021 and 6/1/2022 if they need to have $30,000 saved on 6/1/2023 to fund future trips?
Thank you
Brenda
Expert Solution
Step 1
Investment rents refer to such amount set aside at regular interval to have a pre-targeted amount at future date. The amount gets adjusted with interest to equalize to the target corpus.
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