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 wellknown ...
 matttth help please  1. Mike wants to invest money every month for 40 years. He...
 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 healthfood 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