Q: Now that you have the RV all set, you want to have a fishing boat to go with it. The boat you want is a MODEST $61,250. You are able to place $2.120 in to an account at the end of each year. No balance on year 0. First deposit is on year 1. But, you know that won't get you there. You are expecing some bonds to mature soon (6 Years). Start the savings account now. 6 years from now, you will have money from bonds to apply to this loan. If you can get a 4.51% rate on you account (PYCY), how much do you need from your bonds to make this work?
Q: Now that you have the RV all set, you want to have a fishing boat to go with it. The boat you want is a MODEST $61,250. You are able to place $2.120 in to an account at the end of each year. No balance on year 0. First deposit is on year 1. But, you know that won't get you there. You are expecing some bonds to mature soon (6 Years). Start the savings account now. 6 years from now, you will have money from bonds to apply to this loan. If you can get a 4.51% rate on you account (PYCY), how much do you need from your bonds to make this work?
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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Q: Now that you have the RV all set, you want to have a fishing boat to go with it. The boat you want is a MODEST $61,250. You are able to place $2.120 in to an account at the end of each year. No balance on year 0. First deposit is on year 1. But, you know that won't get you there. You are expecing some bonds to mature soon (6 Years). Start the savings account now. 6 years from now, you will have money from bonds to apply to this loan. If you can get a 4.51% rate on you account (PYCY), how much do you need from your bonds to make this work?
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