Planning to buy mountain chalet

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Reference no: EM131308023

In 10 years you are planning to buy a mountain chalet. The chalet you want currently costs $100,000 and is expected to increase in value each year at a rate of 2.5 percent. If you can earn 10% annually on your investments, how much must you invest at the end of each of the next 10 years to be able to buy the chalet? a) $6,275 d) $7,302 b) $8,032 e) $20,833 c) $5,704

Reference no: EM131308023

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