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Inflation, time value, and annual deposits Personal Finance Problem While vacationing in Florida, John Kelley saw the vacation home of his dreams. It was listed
Inflation, time value, and annual deposits Personal Finance Problem While vacationing in Florida, John Kelley saw the vacation home of his dreams. It was listed with a sale price of $213,000. The only catch is that John is 43 years old and plans to continue working until he is 65. John believes that prices generally increase at tho o orall rate of inflation and that he can earn 8% on his investments. He is iing to invest an ed amount at the end of each of the nest 22 years to und the cash purchase of such a house (one that can be purchased today for $213,000) when he retires a. Inflation is expected to average 3% a year for the next 22 years. what wil John's dream house cost w hen he retires? b. How much must John invest at the end of each of the next 22 years to have the cash purchase price of the house when he retiros? c. If John invests at the beginning instead of at the end of each of the next 22 years, how much must he invest each year? a. When he retires, John's dream house will cost s(Round to the nearest cent)
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