Your sister just deposited $6,500 into an investment account. She believes that she will earn an annual return of 9 percent for the next 8 years You believe that you will only be able to earn an annual return of 8.4 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in B years?

Your sister just deposited $6,500 into an investment account. She believes that she will earn an annual return of 9 percent for the next 8 years You believe that you will only be able to earn an annual return of 8.4 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in B years?

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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Similar questions

Your sister just deposited $5,000 Into an investment account. She belleves that she will earn an annual return of 8.7 percent for the next 5 years. You believe that you will only be able to earn an annual return of 7.8 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 5 years?
You invest $2000 today at 7% per year. If you leave thisfor your grandchildren by not touching the account for80 years, what is the amount of interest on interestearned for this investment? Please explain how to do this problem in the financial calculator. The most important thing is that I understand how to solve the problem on my own
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