Accumulating a growing future sum Personal Finance Problem A retirement home at Deer Trail Estates now costs $145,000. Inflation is expected to cause this price to increase at 4% per year over the 25 years before C. L. Donovan retires.If Donovan earns 9% on his investments, ow large must an equal, end-of-year deposit must be to provide the cash needed to buy the home 25 years from now?The equal, annual end-of-year deposit to be made each year into the account is $(Round to the nearest cent.)

Future Value of Annuity: It represents the future worth of the annuity payments made periodically…

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The equal, annual end-of-year deposit to be made each year into the account is $ (Round to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 23P

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Question

Accumulating a growing future sum Personal Finance Problem A retirement home at Deer Trail Estates now costs $145,000. Inflation is expected to cause this price to increase at 4% per year over the 25 years before C. L. Donovan retires.
If Donovan earns 9% on his investments, ow large must an equal, end-of-year deposit must be to provide the cash needed to buy the home 25 years from now?
The equal, annual end-of-year deposit to be made each year into the account is $
(Round to the nearest cent.)

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