You decided to save every month for the next ten years a certain amountso that you can make a down payment for a house in your early thirties. Ifyou think you can make an annual return of 9% and you think you willneed to save $50,000 for the down payment, how much should thatmonthly payment be?a. $258b. $464c. $3291d. $536

Monthly payments are easy to deposit but over the time grow to large amount due to compounding of…

You decided to save every month for the next ten years a so that you can make a down payment for a house in you you think you can make an annual return of 9% and you t need to save $50,000 for the down payment, how much monthly payment be? a. $258 b. $464 $2291

You decided to save every month for the next ten years a so that you can make a down payment for a house in you you think you can make an annual return of 9% and you t need to save $50,000 for the down payment, how much monthly payment be? a. $258 b. $464 $2291

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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Suppose you invest $200 a month for 6 years into an account earning 9% compounded monthly. After 6 years, you leave the money, without making additional deposits, in the account for another 20 years. How much will you have in the end? $ Suppose instead you didn't invest anything for the first 6 years, then deposited $200 a month for 20 years into an account earning 9% compounded monthly. How much will you have in the end?
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