Question
John inherited $80,000 recently. He expects to spend $10,000 at the end of every year for the next 10 years. Will this inheritance be sufficient
John inherited $80,000 recently. He expects to spend $10,000 at the end of every year for the next 10 years. Will this inheritance be sufficient to last 10 years, given that the bank interest rate is 2% per annum?
I am unsure about this time value of money question. Whether it is ordinary annuity or uneven cash flows. I've tried to used FV = PV x FVIF, please help me solve this.
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
