Robyn is looking to buy a condo in $5$ years for $$300,000$ in today's dollars. She can earn an $8\%$ refurn on her investments and she expects inflation to be $2\mathrm{.}5\%.$ What serial payment should Robyn make at the end of the first year?

a$.$ $$51,136\mathrm{.}94.$

b$.$ $$52,415\mathrm{.}36.$

c$.$ $$53,897\mathrm{.}14.$

d$.$ $$55,244\mathrm{.}56.$

Answer. c $$53,897\mathrm{.}14$

$N=5$

$l=5\mathrm{.}3660=(1+0\mathrm{.}08)(1+0\mathrm{.}025)-1$

$PV=0$

$PMT=$

$FV=300,000$

Robyn is looking to buy a condo in $5$ years for $$300,000$ in today's dollars. She can earn an $8\%$ return on her investments and she expects inflation to be $2\mathrm{.}5\%.$ What serial payment should Robyn make at the end of the second year?

a$.$ $$55,510\mathrm{.}96.$

a$.$ $$56,625\mathrm{.}69.$

b$.$ $$53,987,14.$

c$.$ $$55,244\mathrm{.}56.$

Answer.

$N=1$