A retirement home at West Island Estates now costs US$185,000. Inflation is expected to cause this price

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A retirement home at West Island Estates now costs US$185,000. Inflation is expected to cause this price to increase at 6 percent per year over the 20 years before Shawqi Dalal retires. How large an equal, annual, end- of-year deposit must be made each year into an account paying an annual interest rate of 10 percent for Shawqi to have the cash needed to purchase a home at retirement?
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Principles of Managerial Finance

ISBN: 978-1408271582

Arab World Edition

Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix

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