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In 10 years you are planning on retiring and buying a house in Oviedo, Florida. The...

In 10 years you are planning on retiring and buying a house in Oviedo, Florida. The house you are looking at currently costs $300,000 and is expected to increase in value at a rate of 3%/yr. You can earn 5% annually on your investments, how much must you invest at the end of each month for the next 10 years to be able to buy your dream home for cash when you retire and have $100,000 left over for a new boat?

***Please use financial calculator with steps written down for the keystrokes***

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Homework Answers

Answer #1

Please find below table useful to compute desired results: -

End results would be as follows: -

You should invest $3,276 at the end of each month in order to save the desired amount for both a new boat and a home.

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