Question
Momin plans to buy a house on cash instead of paying mortgage. He plans to set aside $14400 at the end of each year for
Momin plans to buy a house on cash instead of paying mortgage. He plans to set aside $14400 at the end of each year for 15 years. He puts his savings in a Tax Free Savings Account (TFSA) and invests them in a high risk mutual fund, which has traditionally earned 12.2% annually. Money decreases in value by 2.5% per annum as well. How much will Momin have saved after 15 years?
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
