Liam dreams of starting her own business to import consumer electronics products to the country. she estimates she can earn 12% of her investment and that she will need to have $300000 at the end of year 10 if she wants to give her business a good solid foundation. she now has $28850 in her account

Liam dreams of starting her own business to import consumer electronics products to the country. she estimates she can earn 12% of her investment and that she will need to have $300000 at the end of year 10 if she wants to give her business a good solid foundation. she now has $28850 in her account

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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Liam dreams of starting his own business to import consumer electronic products to his home country. He estimates he can earn 5% on his investments and that he will need to have $300,000 at the end of year 10 if he wants to give his business a good solid foundation. He now has $28,850 in his account, and he believes he can save $12,000 each year from his income, beginning now. He plans to marry at about the end of Year 6 and will skip the investment contribution that year. How far below or above his $300,000 goal will he be?
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