Students Chapter 6 Supplemental Problems

# Students Chapter 6 Supplemental Problems - Chapter 6...

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Chapter 6 Supplemental Problems SP 6.1 In 20 years you plan to retire and buy a house in the South Pacific.  The house you are looking at  currently costs \$200,000 and is expected to increase in value each year at a rate of 10  percent.  Assuming you can earn 20 percent annually on your investments, how much must  you invest at the end of each of the next 20 years to be able to buy your dream home when  you retire?  How much would you have to invest each year or each month to afford your  retirement getaway?  SP 6.2 How much do you have to deposit today so that beginning 11 years from now you can withdraw  \$25,000 a year for the next five years (periods 11 through 15) plus an  additional  amount of  \$50,000 in that last year (period 15)?  Assume an interest rate of 7 percent. SP 6.3

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## This note was uploaded on 08/22/2009 for the course FIN 3310 taught by Professor Potts during the Spring '08 term at Baylor.

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Students Chapter 6 Supplemental Problems - Chapter 6...

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