How much do you have to invest

Reference no: EM132178327

Question - You need $70,000 in today's buying power 6 years from now.

You can earn 2% APR in real terms on your investments.

How much do you have to invest, in nominal terms (the same amount each year), starting next year for 5 years, to just meet your needs, if you expect inflation to be 4% per year?

$8,018

$4,245

$14,788

$15,539

Reference no: EM132178327

Questions Cloud

What was the interest rate on the one-month eurodollar : Investigate the data available from the Federal Reserve Bank of St. Louis FRED database. What was the interest rate on the one-month Eurodollar

Calculate the outcome of the fra : Calculate the outcome of the FRA, the expected interest cash flow, the effective cash flow and effective interest rate of the strategy

The message begin when using indirect approach : How should the message begin when using the indirect approach?

In what ways are profit-maximizing and loss minimizing same : A restaurant owner is trying to decide whether to stay open at lunchtime. She has far fewer customers at lunch than at dinner.

How much do you have to invest : How much do you have to invest, in nominal terms (the same amount each year), starting next year for 5 years, to just meet your needs

What might you expect to happen to the profit maximizing : Suppose a firm is operating in a competitive market and is maximizing profit by producing at the point where marginal revenue 5 marginal cost.

Determine the precise information required for audience : Which of the following is an example of a message topic? At which point in planning process should you determine the precise information required for audience?

Do you recommend that the manager increase number of donuts : The manager of the donut shop tells you that he sells donuts for $1 each, and that if he were to make additional donuts, based on his current level of output.

Important characteristics of the ideal organization : What are 5 most important characteristics of the ideal organization that you would like to be a part of, and why?

User Account

All Pages