a. Assuming that property prices are not expected to grow in the medium term, how much money will she need to put into her bank account per year over the next 7 years to afford the recommended deposit and stamp duty for an average house in Samilan? Assume that she currently has a bank account balance of $57,000, savings account interest rates will remain stable at 2.0%, and interest is compounded daily. Assume an additional Stamp duty cost of 4% of the property value upon purchase. Stamp duty in this case must be paid for with her own savings and cannot be borrowed.
a. Assuming that property prices are not expected to grow in the medium term, how much money will she need to put into her bank account per year over the next 7 years to afford the recommended deposit and stamp duty for an average house in Samilan? Assume that she currently has a bank account balance of $57,000, savings account interest rates will remain stable at 2.0%, and interest is compounded daily. Assume an additional Stamp duty cost of 4% of the property value upon purchase. Stamp duty in this case must be paid for with her own savings and cannot be borrowed.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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