Inflation is expected to cause this price to increase

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A retirement home at Deer Trail Estates now costs $185,000. Inflation is expected to cause this price to increase at 6% annually over the next 20 years. How large an equal, annual, end –of-year deposit must be made each year into an account paying an annual interest rate of 10% for purchaser to have enough cash to purchase the home in 20 years? ( Note that the rate of inflation compounds just like any other rate.)

Reference no: EM131010904

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