You need $18,000 in today's buying power 4 years from now. You can earn 3% APR...

You need $18,000 in today's buying power 4 years from now.
You can earn 3% APR in real terms on your investments.
How much do you have to invest, in nominal terms (the same amount each year), starting next year for 2 years, to just meet your needs, if you expect inflation to be 4% per year?

Expert Solution

jeff jeffy answered 2 years ago

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You need $18,000 in today's buying power 4 years from now. You can earn 3% APR...

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