Posted by **Jeremy** on Sunday, April 1, 2012 at 10:44pm.

A woman would like to open a store in 8 years. She figures she will need 50,000 in capital to do so. She will make 10% on her money.

a. How much would she need to invest today in one lump sum to end up with 50000 in 8 years?

I got 23,325.25

b. if she's starting from scratch how much would she have to put away annually to accuulate the needed capital in 8 years?

I got 1247.82

c. how about if she already has 10,000 put away, how much would she have to put away to accumulate the needed capital in 8 years?

--This is the one I am stuck on. Also check my previous answers, they seem right but IDK. Thanks for any input!

- Accounting -
**Henry**, Tuesday, April 3, 2012 at 12:08am
a. P = Po + Po*r*t.

Po + Po*0.10*8 = $50,000.

Po + 0.8Po = 50,000.

1.8Po = 50,000.

Po = 50,000 / 1.8 = $27,777.78.

- Accounting -
**lisa**, Monday, May 19, 2014 at 11:43am
answer to c. If you expect to earn a 10.000% interest rate, compounded annually, you will need to deposit/invest $18,660.30 now in order for your investment to grow to $40,000.00 over the course of the next 8 years.

## Answer This Question

## Related Questions

- finance - Linda Scales is now employed as the managing editor of a well-known ...
- matttth help please - 1. Mike wants to invest money every month for 40 years. ...
- MATH - Rico can invest money at 10%/a compounded quarterly. He would like $15 ...
- Finance - Nancy Bellow promised her son she would pay him $600 a quarterly for ...
- Math - Stacy requires $3,000 in three years to make a down payment on a new car...
- Finance - Accounting - Can somebody people check this out and let me know if I ...
- Mathematics of growth rate! Need help! - Suppose that your child is born this ...
- finance management - Wanda wants to open a health-food store. Her monthly ...
- Math - Please help check my answers to make sure they are correct. I used the "...
- MATH - Please help check my answers to make sure they are correct. I used the "...

More Related Questions