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using a business calculator C. You plan on purchasing a retirement home in Menomonie, WI ten years from today. The home would cost $250,000 today

using a business calculator image text in transcribed
C. You plan on purchasing a retirement home in Menomonie, WI ten years from today. The home would cost $250,000 today and you feel this will increase 4% per year for the next 10 years. You know you will need 20% of the sales price at the time of purchase for a down payment so you would like to save on a monthly basis with the first payment going in one month from today and the last payment going in the month you purchase the home. Assume your money can earn 9% (compounded monthly) for the next ten years, what should these payments be so that you have enough ten years from now for the down payment? D. If you were offered $5,000,000 today, or $2.500.000 per year for five years with the first of these payments coming ten years from today, which would you take and, why? Assume you have an 8% opportunity cost. E. You can receive $400,000 five years from today or $1,000,000 thirty years from today. What interest rate makes them equivalent

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