Miss Balqis wishes to purchase a cottage located in a rural area in 12 years when she retires in Malaysia. She is planning to buy the cottage using the proceeds from the sale of her condominium located at Cheras that is currently valued at RM380,000. The value of the condominium in Cheras is expected to rise by 7% per year. The cottage is currently worth RM1,200,000 increasing at 5% per year. In addition to the value of her condominium, how much additional money should she deposit at the beginning of each year in an investment paying 6.6 % annual interest in order to be able to purchase the cottage upon retirement?

Miss Balqis wishes to purchase a cottage located in a rural area in 12 years when she retires in Malaysia. She is planning to buy the cottage using the proceeds from the sale of her condominium located at Cheras that is currently valued at RM380,000. The value of the condominium in Cheras is expected to rise by 7% per year. The cottage is currently worth RM1,200,000 increasing at 5% per year. In addition to the value of her condominium, how much additional money should she deposit at the beginning of each year in an investment paying 6.6 % annual interest in order to be able to purchase the cottage upon retirement?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 38P

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