Say you want to invest a certain amount of your salary each year. This year you take $2,500 out of your pay check to invest. Over the next 8 years your salary is expected to increase by 3% each year so you increase your investments at the same amount. How much will the investment be worth in 5 years if your investment vehicle returns 9.5%?
Say you want to invest a certain amount of your salary each year. This year you take $2,500 out of your pay check to invest. Over the next 8 years your salary is expected to increase by 3% each year so you increase your investments at the same amount. How much will the investment be worth in 5 years if your investment vehicle returns 9.5%?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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