Stuart Daniels estimates that he will need $26,000 to set up a small business in 7 years. (a) How much (in $) must Stuart invest now at 8% interest compounded quarterly to achieve his goal? (b) How much compound interest (in $) will he earn on the investment? $

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 18PROB
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Stuart Daniels estimates that he will need $26,000 to set up a small business in 7 years.
(a) How much (in $) must Stuart invest now at 8% interest compounded quarterly to achieve his goal?
(b) How much compound interest (in $) will he earn on the investment?
$
Transcribed Image Text:Stuart Daniels estimates that he will need $26,000 to set up a small business in 7 years. (a) How much (in $) must Stuart invest now at 8% interest compounded quarterly to achieve his goal? (b) How much compound interest (in $) will he earn on the investment? $
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