Kevin Winthrop is saving for an Australian vacation in three years. He estimates that he will need $5,000 to cover his airfaire and all other expenses for a weeklong holiday in Australia. If he can invest his money in an S & P 500 equity index fund that is expected to earn an average annual return of 10.3 percent over the next three years, how much will he have to save every year if he starts saving at the end of this year?
Kevin Winthrop is saving for an Australian vacation in three years. He estimates that he will need $5,000 to cover his airfaire and all other expenses for a weeklong holiday in Australia. If he can invest his money in an S & P 500 equity index fund that is expected to earn an average annual return of 10.3 percent over the next three years, how much will he have to save every year if he starts saving at the end of this year?
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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| Kevin Winthrop is saving for an Australian vacation in three years. He estimates that he will need $5,000 to cover his airfaire and all other expenses for a weeklong | ||||||||
| holiday in Australia. If he can invest his money in an S & P 500 equity index fund that is expected to earn an average annual return of 10.3 percent over the next three years, | ||||||||
| how much will he have to save every year if he starts saving at the end of this year? |
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