John Fillmores lifelong dream is to own his own fishing boat to use in his...
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John Fillmores lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $424,200. He estimates that the boat he wants will cost $349,700 when he retires in 4 years. Assuming quarterly compounding of amounts invested at 8%, how much of John Fillmores inheritance must be invested to have enough at retirement to buy the boat?
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To determine how much of John Fillmores inheritance he needs to invest to afford the boat in 4 years we can use the formula for future value with compound interest The formula is FV PV times 1 rnnt Where FV future value the
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