Multiple Choice
A beach house in Southern California now costs $350,000. Inflation is expected to cause this price to increase at 5 percent per year over the next 20 years before Eric and Karinna retire from successful careers in commercial art. How large an equal annual end-of-year deposit must be made into an account paying an annual rate of interest of 13 percent in order to buy the beach house upon retirement?
A) $11,472
B) $4,323
C) $79,977
D) $17,350
Correct Answer:
Verified
Correct Answer:
Verified
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