Manny and Irene will be retiring in fifteen years and would like to buy a Mexican villa. The villa
costs $500,000 today, and housing prices in Mexico are expected to increase by 6% per year.
Manny
and Irene want to make fifteen equal annual payments into an account, starting today, so there will
be enough money to purchase the villa in fifteen years. If the account earns 10% per year, what is
the amount of each deposit?
A) $79,885 B) $32,947 C) $34,286 D) $72,623
C
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Because the increased level of financial market integration has increased the speed with which interest rate changes are transmitted among countries, control of U.S. interest rates by the Federal Reserve is more difficult and less certain.
a. true b. false
A new residential development requires that all single-family houses have brick fronts. This requirement is most likely an example of:
a. local building codes b. municipal regulations c. a covenant d. a zoning ordinance