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Bob and Kate will be retiring in 20 years and want to buy a Villa which is selling for $500000 today. Villas are expecte...

Bob and Kate will be retiring in 20 years and want to buy a Villa which is selling for $500000 today. Villas are expected to appreciate as the rate of 6% per year. Bob and kate want to make 20 equal payments into an account starting one year from today so there will b enough to purchase in 20 years. how much will the villa cost in 20 years?

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Answer #1

Villa will cost in 20 years:-

=FV(rate,nper,pmt,pv)

=FV(6%,20,,500000)

=1,603,567.74

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