Alan Fillmore’s lifelong dream is to own his own fishing boat to use in his retirement. Alan has recently come into an inheritan

Question

3 years ago

8

Alan Fillmore’s lifelong dream is to own his own fishing boat to use in his retirement. Alan has recently come into an inheritan

ce of $410,900. He estimates that the boat he wants will cost $334,300 when he retires in 6 years. Click here to view factor tables How much of his inheritance must he invest at an annual rate of 4% (compounded annually) to buy the boat at retirement? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

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1 answer:

horrorfan [7] · Answer 1 · 2022-01-28T08:00:30+03:00

horrorfan [7]3 years ago

6 0

Answer:

$264202

Explanation:

We use the present value formula to calculate the money to be invested now in order to get 334300

PV = FV *1/(1+R)^n

334300*1/(1.04)^6

=$264202