You and your brother inherited a business. You and him would like to split 50/50. Your...

You and your brother inherited a business. You and him would like to split 50/50. Your brother want to sell his half out to you in the future. He told you that he feels this will be when you turn 35 years old. Today, you just turned 22. Today the entire company is worth 500,000$. You expect the growth of 3% per year with this money invested for the next 5 years, then 5% per year for the following 8 years, at which time you will buy your brother's half.

You currently have just 20,000$ of your own money and have to start investing heavily in order to have the money you need when time comes for you to buy your brother out. You invest 20,000$ now. In addition, you find that you can afford to save 1350$ per month starting at the end of the current month and continuing each month for the next five years. After that time, you feel you will be making more money and can put more in the investment account each month. How much do you have to put in each month for those last 8 years in order to have the amount you need by the time you turn 35? the rate is 6.6% compounded monthly.

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jeff jeffy answered 1 year ago

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