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Find how much should invest at the beginning of each year

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Question 1: Marcia is planning to buy a car in five (5) years' time. She estimates that the car would cost $2,500,000.00. Given that the existing interest rate is 12 %, how much money should she invest now?

Question 1: Marcia has an option to invest in an insurance policy at a rate of 20 %. How much should she invest at the beginning of each year for the next 5 years in order to achieve her goal?

Question 2: If the interest rate decreases from 20 % to 15 %, by how much would Marcia annual investment in part 2 (above) change?

Reference no: EM132531358

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