Mr & Mrs Pribel Wish to Purchase a Boat in 8 Years

question 27

Essay

Mr. & 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?

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Definitions:

Multidisciplinary Teams

Groups comprised of members from different academic and professional backgrounds, working collaboratively towards a common goal.

Small Changes

are minimal adjustments or modifications that can lead to significant improvements or results over time.

High-hope Individuals

People who possess a strong belief in their ability to achieve their goals, combined with the motivation and strategies to do so.

Anxious

Characterized by feelings of worry, unease, or nervousness, typically about an imminent event or something with an uncertain outcome.