Mrs. John wants to take the next three years off work to travel around the world. She estimates her annual cash needs at $20,000. Mrs. John believes she can invest her savings at 10% until she depletes her funds. Table factor at 10% is 4.883 and at 7% is 4.152
Mrs. John wants to take the next three years off work to travel around the world. She estimates her annual cash needs at $20,000. Mrs. John believes she can invest her savings at 10% until she depletes her funds. Table factor at 10% is 4.883 and at 7% is 4.152
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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Mrs. John wants to take the next three years off work to travel around the world. She estimates her
annual cash needs at $20,000. Mrs. John believes she can invest her savings at 10% until she depletes
her funds. Table factor at 10% is 4.883 and at 7% is 4.152
To find out how much she should invest now to fund her future cash flow if she invests at 10%. Or what
to invest if only earn 7 %.(
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