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?
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?
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
Problem 1PS
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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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