A ski chalet at Peak n' Peak now costs $250,000. Inflation is expected to cause this price to increase at 5 percent per year over the next 10 years before Chris and Julie retire from successful investment banking careers
How large an equal annual end-of-year deposit must be made into an account paying an annual rate of interest of 13 percent in order to buy the ski chalet upon retirement?
A) $ 8,333
B) $13,572
C) $25,005
D) $22,109
D
You might also like to view...
Grooming rituals express two kinds of binary opposition: private/public and ________
A) work/leisure B) self/others C) pride/modesty D) innocence/experience
Which of the following is the most likely reason why employers should employ older workers?
A) They adjust to new technology promptly. B) Older workers have extensive work experience. C) Older workers are flexible and learn quickly. D) They have shorter tenures and hence lower pension benefits than younger workers. E) The rates of unavoidable absences are lower than those of younger workers.