Alison Conroy is early in her career and is now employed as the managing editor of a well-known business journal. Although she thoroughly enjoys her job and the people she works with, she would really like to be a literary agent. She would like to go on her own in about seven years and figures she'll need about $ 35,000 in capital to do so. Given that she thinks she can make about 11 percent on her money.How much would Alison have to invest today, in one lump sum, to end up with $ 35,000 in seven years? Round the answer to two decimal places. If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in seven years? Round the answer to two decimal places. How about if she already has $ 15,000 socked away; how much would she have to put away annually to accumulate the required capital in seven years? Round the answer to two decimal places. Given that Alison has an idea of how much she needs to save, briefly explain how she could use an investment plan to help reach her objective.

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Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 2FPE

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Alison Conroy is early in her career and is now employed as the managing editor of a well-known business journal. Although she thoroughly enjoys her job and the people she works with, she would really like to be a literary agent. She would like to go on her own in about seven years and figures she'll need about $ 35,000 in capital to do so. Given that she thinks she can make about 11 percent on her money.

How much would Alison have to invest today, in one lump sum, to end up with $ 35,000 in seven years? Round the answer to two decimal places.
If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in seven years? Round the answer to two decimal places.
How about if she already has $ 15,000 socked away; how much would she have to put away annually to accumulate the required capital in seven years? Round the answer to two decimal places.
Given that Alison has an idea of how much she needs to save, briefly explain how she could use an investment plan to help reach her objective.

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