Jim is going to save his money to buy his dream house in a years. The house that he has in mind, costs $1,95D.t} as
Jim is going to save his money to buy his dream house in a years. The house that he has in mind, costs $1,95D.t} as of now. Its price is expected to appreciate 3% per year. Jim receives a yearly salary of $1 1 5,0[10 and has an annual living expense of $49,091:]. which is expected to grow 5% every year. Based on his good rapport with his supervisor, and her verbal promise, Jim is planning to stay in this company for the long haul and is counting on a considerable raise in salary. increasing his salary to $1 E per year After a years. He thinks he can keep his expense pattern constant (growing at 5% per Year) As for his investments, Jim has saved up $5.t} in his bank account and able to invest with his surplus. Currently the best investment strategy that he knows gives him 9% per year on interest, but Jim knows that he will be able to invest in a new trust fund that will give him 15% per year. starting at the end of year 5 from now. a) What would be Jim's total saved money at the time just prior to him getting his raise? (at the end of year 6) b) How much does Jim\" s dream house cost at the time Jim is getting the raise in salary? (Assume this is right BEFORE he gets the new $18t}, salary}. Would he be able to buy the house? c) When would Jim be able to buy his dream house? Your answer should be \"At the end of year \
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