(Future value of an annuity) In 9 years, you are planning on retiring and buying a...

Transcribed Image Text:

(Future value of an annuity) In 9 years, you are planning on retiring and buying a house in Oviedo, Florida. The house you are looking at currently costs $130,000 and is expected to increase in value each year at a rate of 3 percent. Assuming you can earn 8 percent annually on your investments, how much must you invest at the end of each of the next 9 years to be able to buy your dream home when you retire? a. If the house you are looking at currently costs $130,000 and is expected to increase in value each year at a rate of 3 percent, what will the value of the house be when you retire in 9 years? (Future value of an annuity) In 9 years, you are planning on retiring and buying a house in Oviedo, Florida. The house you are looking at currently costs $130,000 and is expected to increase in value each year at a rate of 3 percent. Assuming you can earn 8 percent annually on your investments, how much must you invest at the end of each of the next 9 years to be able to buy your dream home when you retire? a. If the house you are looking at currently costs $130,000 and is expected to increase in value each year at a rate of 3 percent, what will the value of the house be when you retire in 9 years?