What is expected to be in the account

Reference no: EM131956135

Question: Your client is collecting rent of $10,000 per year on a commercial building. His operating expenses are $5000 per year and he deposits the remaining $5000 per year into an account that earns an annual interest of 10%. The accumulated balance in the account including principal and interest at the present time is $42,312 including a very recent year-end deposit of $5000. Your client plans to demolish the existing structure five years from now (he will make five more deposits of $5000 each) and replace it with a structure estimated to cost $150,000. How much cash will he need five years from now in addition to what is expected to be in the account?

Reference no: EM131956135

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