A. Jamie Lee needs to save a total of $9,000 in order to get started in...
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A. Jamie Lee needs to save a total of $9,000 in order to get started in her cupcake café venture. She is presently depositing $1,800 a year in a regular savings account. Calculate the future value of these deposits. B. Assuming that she leaves her emergency fund of $1,800 untouched, how much will her emergency fund be worth? C. What if Jamie Lee had a relative that could give her money now that she could invest? What is the minimum amount she would need now to ensure that she had $9,000 when she wanted to open the cupcake café? D. As Jamie Lee is planning ahead for operating the cupcake café, she calculates that she will need $27,000 per year in salary. What is the value of five years of salary when the cupcake café opens? (Assume that she will take the salary as a one-time payment each year) Use the table below and Exhibit 1-A. Exhibit 1-B. Exhibit 1-C. and Exhibit 1-D to calculate the balances of the information provided above. Assume that the time period for each scenario is 5 years, and the interest rate is 3%. A. Future Value of a Series of Deposits Regular deposit amount B. Future Value of a Single Amount Current amount C. Present Value of a Single Amount Future amount desired D. Present Value of a Series of Deposits Regular amount to be withdrawn times times times times Future value of annuity factor Future value. factor Present value factor Present value of annuity factor equals equals equals equals Future value amount Future value amount Present value amount Present value amount A. Jamie Lee needs to save a total of $9,000 in order to get started in her cupcake café venture. She is presently depositing $1,800 a year in a regular savings account. Calculate the future value of these deposits. B. Assuming that she leaves her emergency fund of $1,800 untouched, how much will her emergency fund be worth? C. What if Jamie Lee had a relative that could give her money now that she could invest? What is the minimum amount she would need now to ensure that she had $9,000 when she wanted to open the cupcake café? D. As Jamie Lee is planning ahead for operating the cupcake café, she calculates that she will need $27,000 per year in salary. What is the value of five years of salary when the cupcake café opens? (Assume that she will take the salary as a one-time payment each year) Use the table below and Exhibit 1-A. Exhibit 1-B. Exhibit 1-C. and Exhibit 1-D to calculate the balances of the information provided above. Assume that the time period for each scenario is 5 years, and the interest rate is 3%. A. Future Value of a Series of Deposits Regular deposit amount B. Future Value of a Single Amount Current amount C. Present Value of a Single Amount Future amount desired D. Present Value of a Series of Deposits Regular amount to be withdrawn times times times times Future value of annuity factor Future value. factor Present value factor Present value of annuity factor equals equals equals equals Future value amount Future value amount Present value amount Present value amount
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A To calculate the future value of Jamie Lees deposits we can use the formula for the future value o... View the full answer
Related Book For
Personal Finance
ISBN: 9781264101597
14th Edition
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
Posted Date:
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