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You would like to purchase a vacation home when you retire 9 years from now. The current cost of the homes that interest you is
You would like to purchase a vacation home when you retire 9 years from now. The current cost of the homes that interest you is $232,392; however, you expect their price to rise at 2.63% per year for the next 9 years. How much must you save each year in nominal terms (the same amount each year) for 14 years, starting next year, to just be able to pay for the vacation home if you earn 4.69% APR (compounded annually) on your investments? Question 6 1 pts You expect that you will need to replace your furnace in 6 years at a cost of $16,518. How much must you save, each month for 18 months, starting next month (the same amount each month) if your savings account pays 2.65% APR (compounded monthly)
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