Question
Bill and Cathy will be retiring in fifteen years and would like to buy an Italian villa. The villa costs $500,000 today, and housing prices
Bill and Cathy will be retiring in fifteen years and would like to buy an Italian villa. The villa costs $500,000 today, and housing prices in Italy are expected to increase by 5.5% per year. Bill and Cathy wants to deposit one lump sum amount today. If their account earns 10% per year, what is the amount of this deposit?
| a. | $286,858 | |
| b. | $307,839 | |
| c. $372,623 | ||
| d. $267,219 |
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Shape Up Your Finances The Personal Finances Handbook
Authors: Ian Birt
1st Edition
0734608268, 978-0734608260
