Question
1. You plan to buy the house of your dreams in 11 years. You have estimated that the price of the house will be $61,364
1. You plan to buy the house of your dreams in 11 years. You have estimated that the price of the house will be $61,364 at that time. You are able to make equal deposits every month at the end of the month into a savings account at a rate of 6.02 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams?
2. what is the present value of the following annuity? $898 every year at the end of the year for the next 7 years, discounted back to the present at 15.64 percent per year at 15.64 per year compounded annually?
3. if you invest $4,288 today at an interest rate of 6.87 percent, compounded daily, how much money will you have saving account in 22 years?
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