Mr. & Mrs. Pribel wish to purchase a boat in 8 years when they retire. They are planning to purchase the boat using proceeds from the sale of their property which is currently worth $90,000 and its value is growing at 7 percent a year
The boat is currently worth $200,000 increasing at 5 percent per year. In addition to the value of their property, how much additional money should they deposit at the end of each year in an account paying 9 percent annual interest in order to be able to buy the boat upon retirement?
Value of the property upon retirement:
PV = $90,000, I = 7, N = 8, PMT=0
CPT FV = $154,637
Value of the boat upon retirement:
PV = $200,000, I = 5, N = 8, PMT=0
CPT FV = $295,491
Additional money needed upon retirement:
$295,491 - $154,637 = $140854
Amount of money needed to deposit at the end of each year:
PV=0, FV = $140,780, N = 8, I = 9%, PMT = ?
PMT = $12,765.69
You might also like to view...
According to cultivation theory, the mass media “homogenizes” media consumers, making them think in similar ways and have similar values as those they view. This is known as ______.
A. encoding B. symbolic ideology C. mainstreaming D. resonance
______ can be benefical to learn another’s role in an effort to see how others view them.
a. Interviews b. OD interventions c. Role play or dramatic exercises d. Surveys
The _____ is the most ambitious global trade agreement ever negotiated; the agreement has reduced tariffs by one-third worldwide.
A. Uruguay Round B. Mercosur C. GATT D. NAFTA E. Maastricht Treaty
______________________________ is the application of computer and communications technology to improve productivity by linking computer numerical control (CNC) machines, monitoring production, and providing automatic feedback to control operations.
Fill in the blank(s) with the appropriate word(s).