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1. Calculate amount to invest to meet objec- tives. Use Worksheet 11.1. Phoebe Jones 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 оpen she'll need about $50,000 in capital to do so. Given that Phoebe thinks she can make about 10 percent on her money, use Worksheet 11.1 to answer the following questions. a. How much would Phoebe 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? 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? С.

1. Calculate amount to invest to meet objec- tives. Use Worksheet 11.1. Phoebe Jones 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 оpen she'll need about $50,000 in capital to do so. Given that Phoebe thinks she can make about 10 percent on her money, use Worksheet 11.1 to answer the following questions. a. How much would Phoebe 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? 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? С.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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inarn LO4 1. Calculate amount to invest to meet objec- tives. Use Worksheet 11.1. Phoebe Jones 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 Phoebe thinks she can make about 10 percent on her money, use Worksheet 11.1 to answer the following questions. 01 a. How much would Phoebe have to invest today, in one lump sum, to end up with $50,000 in eight years? If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in eight years? b. LO4 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? C. d. Given that Phoebe has an idea of how much she needs to save, explain how she could use an investment plan to help reach her objective. LO4 LO2 2. Rationale for stock ounlı
Transcribed Image Text:inarn LO4 1. Calculate amount to invest to meet objec- tives. Use Worksheet 11.1. Phoebe Jones 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 Phoebe thinks she can make about 10 percent on her money, use Worksheet 11.1 to answer the following questions. 01 a. How much would Phoebe have to invest today, in one lump sum, to end up with $50,000 in eight years? If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in eight years? b. LO4 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? C. d. Given that Phoebe has an idea of how much she needs to save, explain how she could use an investment plan to help reach her objective. LO4 LO2 2. Rationale for stock ounlı
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