Reference no: EM13829049
Using the information below, answer the following questions:
Robert recently graduated from business school and will start working for ACME Mutual Fund Group, Inc. next week. Currently, he is renting an apartment with his girlfriend, Spot, and dog, Rachel. He wants to be able to buy a house before asking Spot to marry him. The price of a median home today is at $350,000 and average annual price increase is expected to be at 5%.
Bob plans to invest $1,000 monthly in growth funds starting next month expecting an average return of 9%
a) Will Bob has the required 20% down payment on a median home within 3 years? How much would Bob have?
b) After waiting for 3 years, Spot left Bob but Rachel stayed. How much should Bob had invested monthly?
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