A retirement home at deer trail estates now costs 185000


A retirement home at Deer Trail Estates now costs $185,000. Inflation is expected to cause this price to increase at 6% annually over the next 20 years. How large an equal, annual, end of year deposit must be made each year into an account paying an annual interest rate of 10% for the purchaser to have enough cash to purchase the home in 20 years? The rate of inflation compounds just like any other rate.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A retirement home at deer trail estates now costs 185000
Reference No:- TGS01130546

Expected delivery within 24 Hours