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In: Finance

You plan to retire 10 years from today. Your current utility bills are $3,457 per year....

You plan to retire 10 years from today. Your current utility bills are $3,457 per year. How much will your utility bills be when you retire if utility costs are rising at 4.91% per year?

Solutions

Expert Solution

We use the formula:  
A=P(1+r/100)^n
where   
A=future value
P=present value  
r=rate of interest
n=time period.

A=3,457*(1.0491)^10

=3,457*1.6149864

=$5583.01(Approx)

jeff jeffy answered 2 years ago
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