You are planning to buy your dream mansion and for that you have decided to make 3 independent investments with your savings money in the next 44 years. You plan to invest $4,100 at the end of each year for the first 17years, $6,900 at the end of each year for the following 11 years, $14,500 at the end of each year for the last 16 years. You believe you will earn an effective annual rate of return of 9.7% on your investment. If the price of your dream mansion will be $1,000,000 after 44 years, will you be able to fulfill your dream with those 3 investments?
You are planning to buy your dream mansion and for that you have decided to make 3 independent investments with your savings money in the next 44 years. You plan to invest $4,100 at the end of each year for the first 17years, $6,900 at the end of each year for the following 11 years, $14,500 at the end of each year for the last 16 years. You believe you will earn an effective annual rate of return of 9.7% on your investment. If the price of your dream mansion will be $1,000,000 after 44 years, will you be able to fulfill your dream with those 3 investments?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
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You are planning to buy your dream mansion and for that you have decided to make 3 independent investments with your savings money in the next 44 years. You plan to invest $4,100 at the end of each year for the first 17years, $6,900 at the end of each year for the following 11 years, $14,500 at the end of each year for the last 16 years. You believe you will earn an effective annual
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