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You would like to buy a motorcycle and adopt the lifestyle, riding around the world and living on your motorcycle for five years. You are
You would like to buy a motorcycle and adopt the lifestyle, riding around the world and living on your motorcycle for five years. | |||||||||
You are currently trying to figure out your finances. A used motorcycle costs $439,000 to buy right now. When you sell the motorcycle in five years | |||||||||
you expect to be able to sell it for $425,000. Upon buying the motorcycle, the immediate refit is expected to cost $55,000. | |||||||||
In one year, you expect to replace the panels and batteries at a cost of $8,000. | |||||||||
Food and fuel will be $2,000 per month | |||||||||
when you travel for the first two years, but will increase to $3,500 per month for the last three years of your journey | |||||||||
. | |||||||||
The money in your account earns interest on balances of 1.1% effective annual rate, and this is also your borrowing rate if you need to take on debt. | |||||||||
How much money do you need to have in your account to buy the motorcycle and start your journey if you want to be flat at the end (i.e., no money left but also no debt)? |
Please solve in excel and post excel with formula text. Thank you!
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