Question
You just graduated and you expect to work for ten years and then to leave for the AustralianOutback bush country. You figure you can save$1,000
You just graduated and you expect to work for ten years and then to leave for the Australian"Outback" bush country. You figure you can save$1,000 a year for the first five years and$2,000 a year for the next five years. These savings cash flows will start one year from now. Inaddition, your family has just given you a$5,000 graduation gift. If you put the gift now and your future savings when theystart, into an account that pays8% compoundedannually, what will your financial"stake" be when you leave for Australia 10 years from now.(Round to the nearest wholedollar)
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