Question
(b) A person is offered a gift of $5,000 now or $8,000 five years from now. If such funds could be ex- pected to earn
(b) A person is offered a gift of $5,000 now or $8,000 five years from now. If such funds could be ex- pected to earn 8 percent over the next five years, which is the better choice?
(c) A person wants to have $3,000 available to spend on an overseas trip four years from now. If such funds could be expected to earn 6 percent, how much should be invested in a lump sum to realize the $3,000 when needed? (d) A person invests $50,000 in an investment that earns 6 percent. If $6,000 is withdrawn each year, how many years will it take for the fund to run out
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
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