Miss Balqis wishes to purchase a cottage located in a rural area in 12 years when she retires in Malaysia. She is planning to buy the cottage using the proceeds from the sale of her condominium located at Cheras that is currently valued at RM380,000. The value of the condominium in Cheras is expected to rise by 7% per year. The cottage is currently worth RM1,200,000 increasing at 5% per year. In addition to the value of her condominium, how much additional money should she deposit at the beginning of each year in an investment paying 6.6 % annual interest in order to be able to purchase the cottage upon retirement?
Miss Balqis wishes to purchase a cottage located in a rural area in 12 years when she retires in Malaysia. She is planning to buy the cottage using the proceeds from the sale of her condominium located at Cheras that is currently valued at RM380,000. The value of the condominium in Cheras is expected to rise by 7% per year. The cottage is currently worth RM1,200,000 increasing at 5% per year. In addition to the value of her condominium, how much additional money should she deposit at the beginning of each year in an investment paying 6.6 % annual interest in order to be able to purchase the cottage upon retirement?
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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Miss Balqis wishes to purchase a cottage located in a rural area in 12 years when she retires in Malaysia. She is planning to buy the cottage using the proceeds from the sale of her condominium located at Cheras that is currently valued at RM380,000. The value of the condominium in Cheras is expected to rise by 7% per year. The cottage is currently worth RM1,200,000 increasing at 5% per year. In addition to the value of her condominium, how much additional money should she deposit at the beginning of each year in an investment paying 6.6 % annual interest in order to be able to purchase the cottage upon retirement?
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