Question
When you retire in 15 years, you have the goal of buying a country house that estimated to cost you 1,200 million pesos at that
When you retire in 15 years, you have the goal of buying a country house that estimated to cost you 1,200 million pesos at that time. In order to have the money in 15 years, during the next 5 years you plan to pay at the end of each year an amount to an investment fund that offers you an interest rate of 10% per year. At the end of those 5 years, you will invest the
money resulting from that first investment in a financial instrument for the remaining time, which offers you 14% per year.
What will be the amount you will have to pay each year during the first 5 years to meet your goal?
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
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