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You wanted to accumulate $20,000 in 5 years from now and you decided to deposit 5 deposits with same amount at end of each year for 5 years, starting 1 year from now. If the real rate is 4% per year and expected inflation rate is 3% per year. How much minimum you need to deposit each year to reach your goal? 4,000 3,653 3,349 3,470

You wanted to accumulate $20,000 in 5 years from now and you decided to deposit 5 deposits with same amount at end of each year for 5 years, starting 1 year from now. If the real rate is 4% per year and expected inflation rate is 3% per year. How much minimum you need to deposit each year to reach your goal? 4,000 3,653 3,349 3,470

Essentials Of Investments
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
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Please answer question 9 in the picture, make sure you give the right answer, Thank you for your help.

Question 9 You wanted to accumulate $20,000 in 5 years from now and you decided to deposit 5 deposits with same amount at end of each year for 5 years, starting 1 year from now. If the real rate is 4% per year and expected inflation rate is 3% per year. How much minimum you need to deposit each year to reach your goal? 4,000 3,653 3,349 O 3,470
Transcribed Image Text:Question 9 You wanted to accumulate $20,000 in 5 years from now and you decided to deposit 5 deposits with same amount at end of each year for 5 years, starting 1 year from now. If the real rate is 4% per year and expected inflation rate is 3% per year. How much minimum you need to deposit each year to reach your goal? 4,000 3,653 3,349 O 3,470
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