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Paying cash for a house instead of a mortgage for 15 years, you decide to set aside $12,000 at the end of each year in
Paying cash for a house instead of a mortgage for 15 years, you decide to set aside $12,000 at the end of each year in a fund that earns 9.2% annually and if money decreases in value by 2.5% per year, how much will you have saved at the end of fifteen (15) years?
Please use TI BA II calculator features (N, I/Y, PV, PMT, FV, AMORT) / or the formulas below to solve questions (if possible)
N CY N -1 PVORD (1 + i)PY 1+ 4% FVORD = PMT(1 + 4%)N-1 (1 + i)PY 1 + 4% CY 1+ 4% 1- CY PMT (1 + i)PY] 1+ % CY (1 + i)PY .-1 1 + 4% Formula 12.3: Present Value of a Constant Growth Ordinary Annuity - 1 CY Formula 12.1: Future Value of a Constant Growth Ordinary Annuity CY,N (1 + i)PY 1 + 4% FVDUE = PMT(1 + 4%)N-1 *(1 + i)PY (1 + i)PY -1 1+ 4% Formula 12.2: Future Value of a Constant Growth Annuity Due CY PVDUE 1 + 4% 1- CY PMT (1 + i)PY CY x (1 + i)PY 1+ 4% CY (1 + i)PY - 1 1 + 4% Formula 12.4: Present Value of a Constant Growth Annuity DueStep by Step Solution
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