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Inflation, time value, and annual deposits Personal Finance Problem While vacationing in Flonda, John Kelley saw the vacation home of his dreams. It was listed

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Inflation, time value, and annual deposits Personal Finance Problem While vacationing in Flonda, John Kelley saw the vacation home of his dreams. It was listed with a sale price of $241,000. The only catch is that John in 45 years old and plans to continue working until he is 66. John believes that prices generally increase at the overall rate of inflation and that he can earn 8% on his investments. He is willing to invest a fixed amount at the end of each of the next 20 years to fund the cash purchase of such a house one that can be purchased today for $241,000) when he retires a. Intation is expected to average 4% a year for the next 20 years. What will John's dream house cost when he retiren ? b. How much must John Invest at the end of each of the next 20 years to have the cash purchase price of the house when he retires ? c. If John invests at the beginning instead of at the end of each of the next 20 years, how much must he invest each year? bu're. When he retires, John's dream house will cost $(Round to the nearest cert.) b. The amount John must invest at the end of each of the next 20 years to have the cash purchase price of the house when he retires is $(Round to the nearest cont.) c. If John invests at the beginning instead of at the end of each of the next 20 years, the amount he must invest each your ss (Round to the nearest cont.)

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