PFIN Online, 1 term (6 months) Printed Access Card for Billingsley/Gitman/Joehnk's PFIN 6
6th Edition
ISBN: 9781337118026
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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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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Chapter 11 Solutions
PFIN Online, 1 term (6 months) Printed Access Card for Billingsley/Gitman/Joehnk's PFIN 6
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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