Question
You have two goals. First is to buy a car 5 years from today that you think will cost you 2,000,000 BDT. Second is to
You have two goals. First is to buy a car 5 years from today that you think will cost you 2,000,000 BDT. Second is to buy a home 12 years from today that will cost 10,000,000 BDT.
For the next 5 years, you can save 40,000 BDT at the end of each month.
Assuming you use this savings to buy the car 5 years later and put the additional money in a bank account, how much money do you have to save at the end of each month from year 5 to year 12 to have enough money to buy the house?
Assume for all your savings the interest rate provided by the bank is 9% EAR.
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