URGENT PLEASE A person wants to buy a house after seven years by making...
70.2K
Verified Solution
Link Copied!
Question
Finance
URGENT PLEASE
A person wants to buy a house after seven years by making semiannual deposits of $40,000 in a bank account that pays 10%
1) compute the price of the house
2) three years later, directly after making the sixth payment, the person passed away. His son decided to buy the house on the same day that his father wanted to buy it.
However, he noticed that his fathers payments did not take into consideration the inflation rate of 5% that started three years ago and is expected to continue at the same rate for a long time. The son decided to make annual deposits at the start of each year, starting year four.
COMPUTE the amount of the annual payments that the son has to make in order to be able to buy the house taking into consideration the inflation rate.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
