Question 1207431
she is willing to set aside 12000 at the end of each year for 15 years.
she invests this at 9.2% per year for 15 years.


i think the way to solve this is to calculate it in today's dollars and then determine the value that it will be in tomorrow's dollars.


using the texas instruments business analyst 2 calculator, i get the future value of 12000 dollar payments at the end of each year for 15 years at 9.2% interest rate per year to be equal to 357,917.2439.


that's in today's dollars.


in tomorrow's dollars, at an inflation rate of 2.5% per year, that would be equal to 357,917.2439 / 1.025^15 = 247129.5291.