In 8 years you are planning on retiring and buying a house in Oviedo, Florida. The house you are looking at currently costs $130,000 and is expected to increase in value each year at a rate of 6% Assuming you can earn 12 % annually on your investment, how much must you invest at the end of each of the next 8 years to be able to buy your dream home when you retire?
a) If the house you are looking at currently costs $130,000 and is expected to increase in value each yeat at the rate of 6 %, what will the value of the house be when you retire in 8 years?
b) Assuming you can earn 12 percent annually on your investments, how much must you invest at the end of each of the next 8 years to be able to buy your dream home when you retire?