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Time value of money: Mr. and Mrs. Pribel wish to purchase a boat in 8 years when they retire. They are planning to purchase the boat using proceeds from the sale of their property which is currently worth $90,000 and its value is growing at 7 percent a year. The boat is currently worth $200,000 increasing at 5 percent per year. In addition to the value of their property, how much additional money should they deposit at the end of each year in an account paying 9 percent annual interest in order to be able to buy the boat upon retirement?
Given,Price of the boatIncreasingPrice after YearsPrice = 200,0005%8$295,491.09 Price of the PropertyIncreasingPrice after YearsPrice = 90,0007%8$154,636.76 Extra money requiredMoney..