James Smith plans to save $4,000 every year for the next eight years, starting today. At the end of eight years, James will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 12.0 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)
James Smith plans to save $4,000 every year for the next eight years, starting today. At the end of eight years, James will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 12.0 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)
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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James Smith plans to save $4,000 every year for the next eight years, starting today. At the end of eight years, James will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 12.0 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)
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