EBK PFIN
6th Edition
ISBN: 8220103648844
Author: Billingsley
Publisher: CENGAGE L
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Textbook Question
Chapter 11, Problem 1FPE
CALCULATE AMOUNT TO IN
EST TO MEET OBJECTI
ES. Use Worksheet 11.1. Mary Bender 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, what she would really like to do is open a bookstore of her own. She would like to open her store in about eight years and figures she’ll need about $50,000 in capital to do so. Given that Mary thinks she can make about 10 percent on her money, use Worksheet 11.1 to answer the following questions.
- a. How much would Mary have to invest today, in one lump sum, to end up with $50,000 in eight years?
- b. If she’s starting from scratch, how much would she have to put away annually to accumulate the needed capital in eight years?
- c. If she already has $10,000 socked away, how much would she have to put away annually to accumulate the required capital in eight years?
- d. Given that Mary has an idea of how much she needs to save, explain how she could use an investment plan to help reach her objective.
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Ashley Olson 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 5 years and figures she'll need about $35,000 in capital to do so. Given that she thinks she can make about 7 percent on her money, use Worksheet 11.1 to answer the following questions.
How much would Ashley have to invest today, in one lump sum, to end up with $35,000 in 5 years? Round the answer to the nearest cent.
$
If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in 5 years? Round the answer to the nearest cent.
$
How about if she already has $10,000 socked away; how much would she have to put away annually to accumulate the required capital in 5 years? Round the answer to the nearest cent.
$
Given that Ashley has an idea of how…
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.
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…
Chapter 11 Solutions
EBK PFIN
Ch. 11 - Prob. 1LOCh. 11 - Prob. 2LOCh. 11 - Prob. 3LOCh. 11 - Prob. 4LOCh. 11 - Prob. 5LOCh. 11 - Describe an investment portfolio and how youd go...Ch. 11 - CALCULATE AMOUNT TO INEST TO MEET OBJECTIES. Use...Ch. 11 - Why do you suppose that well-known companies such...Ch. 11 - Prob. 3FPECh. 11 - Prob. 4FPE
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