Question
Please answer Part B a client invests $500 every month, at the end of month, beginning one month from today, for the next twenty five
Please answer Part B a client invests $500 every month, at the end of month, beginning one month from today, for the next twenty five years. The account is expected to earn 6.25%, coumpounded monthly. What will be the balance in 25 years.
a) 500,325.22 B)360,137.03 C)152,375.52 D)28,417.75 E)none of the above Refer to the previous question. If inflation is expected to be 5% over the next 25 years, using the real rate of interest, (nominal minus inflation), recalculate the previous question, reflecting the FVA's purchasing power in Today's dollars. a.155,237.20 b.163,210.25 c.175,975.51 d.199,903.50 e.none of the above
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