Mr. Nelson wants to purchase a 60-inch HD television set with all the bells and whistles so that he can watch the World Quidditch Championship occurring exactly one year from now. He has arranged a rain-check with his local tech-shop to have the television set delivered, installed, and paid for in one year's time, for a total installed cost of $10,000. Being a forward-thinking person, Mr. Nelson wants to save a certain amount in each of the next 12 months to pay for the television set. At the savings rate of 5% per annum compounded monthly, how much must Mr. Nelson save each month in order to pay for the television set in one year's time?
Mr. Nelson wants to purchase a 60-inch HD television set with all the bells and whistles so that he can watch the World Quidditch Championship occurring exactly one year from now. He has arranged a rain-check with his local tech-shop to have the television set delivered, installed, and paid for in one year's time, for a total installed cost of $10,000. Being a forward-thinking person, Mr. Nelson wants to save a certain amount in each of the next 12 months to pay for the television set. At the savings rate of 5% per annum compounded monthly, how much must Mr. Nelson save each month in order to pay for the television set in one year's time?
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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Mr. Nelson wants to purchase a 60-inch HD television set with all the bells and whistles so that he can watch the World Quidditch Championship occurring exactly one year from now. He has arranged a rain-check with his local tech-shop to have the television set delivered, installed, and paid for in one year's time, for a total installed cost of $10,000. Being a forward-thinking person, Mr. Nelson wants to save a certain amount in each of the next 12 months to pay for the television set. At the savings rate of 5% per annum compounded monthly, how much must Mr. Nelson save each month in order to pay for the television set in one year's time?
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