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You are expecting a variety of home-maintenance expenditures over the next few years. Having just...

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Finance

You are expecting a variety of home-maintenance expenditures over the next few years. Having just inherited a nice chunk from your recently deceased uncle, you can put some money into a savings account right now (i.e., today) and then withdraw cash periodically to exactly pay for your (anticipated) maintenance expenses. The rate of return on the savings account is 4.00% per year. Your anticipated expenditures are these: $11000 at t = 2 years, $6000 in three years, $9000 five years. First, complete the following timeline, placing all future cash flows onto the timeline. This task will help you to organize your work and, in turn, identifying the right number of times to discount each cash flow. [If a notch (or instant) on the timeline does not have a cash flow, enter 0. Do not use any decimals.] t = 0 1 2 3 4 5 6 7 8 9 n/a $00 $1100011000 $60006000 $00 $90009000 $80008000 $00 $00 $10001000 Answer: You must invest $enter your response here. [Round your answer to the nearest dollar.]

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