shley 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. $
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.
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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 much she needs to save, briefly explain how she could use an investment plan to help reach her objective.
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