Jerry wants to take the next three years off work to travel around the world. He estimates his annual cash needs at $35,000. Jerry believes he can invest his savings at 6% until he depletes his funds. Present value annuity at 6% for 3 years is 2.6730 (Present Value Interest Factors for a One-Dollar Annuity Discounted) Requirement: How much money does Jerome need now to fund his travels?
Jerry wants to take the next three years off work to travel around the world. He estimates his annual cash needs at $35,000. Jerry believes he can invest his savings at 6% until he depletes his funds. Present value annuity at 6% for 3 years is 2.6730 (Present Value Interest Factors for a One-Dollar Annuity Discounted) Requirement: How much money does Jerome need now to fund his travels?
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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Jerry wants to take the next three years off work to travel around the world. He estimates his annual cash needs at $35,000. Jerry believes he can invest his savings at 6% until he depletes his funds.
(Present Value Interest Factors for a One-Dollar Annuity Discounted)
Requirement: How much money does Jerome need now to fund his travels?
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