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Business, 10.02.2020 21:35 krystalhurst97
You wish to buy a cabin in 15 years. TODAY, the cabin costs $150,000. You believe the price of the cabin will inflate at 4% annually. You want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now.
a. If you can earn 10% annually on your investments, how much do you need to invest NOW, in order to be able to purchase the cabin?
A) 8500B) 3,337C) 64,670D) 89,520
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Answers: 3
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