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N=5 I/Y = 4 FV = 15,000 Colin thinks he can reasonably expect to buy a house in five years. He would like to have accumulated a $15,000 down payment (or a 20% down payment) on a $75,000 home. If Colin thinks he can earn 49 per year on his investments, how much must he invest annually (rounded to the nearest whole dollar) to reach his goal? a. $2,769

N=5 I/Y = 4 FV = 15,000 Colin thinks he can reasonably expect to buy a house in five years. He would like to have accumulated a $15,000 down payment (or a 20% down payment) on a $75,000 home. If Colin thinks he can earn 49 per year on his investments, how much must he invest annually (rounded to the nearest whole dollar) to reach his goal? a. $2,769

Essentials Of Investments
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
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N=5 I/Y = 4 FV = 15,000 Colin thinks he can reasonably expect to buy a house in five years. He would like to have accumulated a $15,000 down payment (or a 20% down payment) on a $75,000 home. If Colin thinks he can earn 4% per year on his investments, how much must he invest annually (rounded to the nearest whole dollar) to reach his goal? a. $2,769 b. $3,480
Transcribed Image Text:N=5 I/Y = 4 FV = 15,000 Colin thinks he can reasonably expect to buy a house in five years. He would like to have accumulated a $15,000 down payment (or a 20% down payment) on a $75,000 home. If Colin thinks he can earn 4% per year on his investments, how much must he invest annually (rounded to the nearest whole dollar) to reach his goal? a. $2,769 b. $3,480
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