Keith is saving in a bank in order to purchase a new house in six years. She anticipates that the price of the house will be $1,500,000 by then. She saves her money into an account paying 5.5% effectively. At the beginning of this year, she deposited $100,000. She also plans to deposit $200,000 at the beginning of the second year and $150,000 at the beginning of each succeeding years. How much more will she need at the end of six years in order to make the purchase?
Keith is saving in a bank in order to purchase a new house in six years. She anticipates that the price of the house will be $1,500,000 by then. She saves her money into an account paying 5.5% effectively. At the beginning of this year, she deposited $100,000. She also plans to deposit $200,000 at the beginning of the second year and $150,000 at the beginning of each succeeding years. How much more will she need at the end of six years in order to make the purchase?
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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Keith is saving in a bank in order to purchase a new house in six years. She anticipates that the price of the house will be $1,500,000 by then. She saves her money into an account paying 5.5% effectively. At the beginning of this year, she deposited $100,000. She also plans to deposit $200,000 at the beginning of the second year and $150,000 at the beginning of each succeeding years. How much more will she need at the end of six years in order to make the purchase?
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