If you owned a property that you expect will require a new $2,500 roof at the end of five years from today, how much would you set aside in equal installments from income each year to be assured of having the necessary capital? You can reinvest your capital at 10 percent annual interest. Ans. An individual wishing to save for the down payment on a home anticipates needing $12,000 in 36 months. If a 7 percent annual return can be earned, how much must be saved each month?
If you owned a property that you expect will require a new $2,500 roof at the end of five years from today, how much would you set aside in equal installments from income each year to be assured of having the necessary capital? You can reinvest your capital at 10 percent annual interest. Ans. An individual wishing to save for the down payment on a home anticipates needing $12,000 in 36 months. If a 7 percent annual return can be earned, how much must be saved each month?
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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- If you owned a property that you expect will require a new $2,500 roof at the end of five years from today, how much would you set aside in equal installments from income each year to be assured of having the necessary capital? You can reinvest your capital at 10 percent annual interest.
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- An individual wishing to save for the down payment on a home anticipates needing $12,000 in 36 months. If a 7 percent annual return can be earned, how much must be saved each month?
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