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You would like to have the current equivalent in terms of today's buying power of $5,000 in years 8 9 and 10 How much would
You would like to have the current equivalent in terms of today's buying power of $5,000 in years 8 9 and 10 How much would you have to invest in years 1, 2 and 3 (the same amount in each year in nominal terms) to fund this level of real consumption? You expect inflation to be 4% per year over that time period. Your investments earn 9% per year in nominal terms.
$3,809 |
$2,735 |
$3,886 |
$3,964 |
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