Use Worksheet 11.1 Ashley Corwin is a young career woman whos now employed as the managing editor

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Use Worksheet 11.1 Ashley Corwin is a young career woman who’s 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 8 years and figures she’ll need about $50,000 in capital to do so. Given that she thinks she can make about 10% on her money, use Worksheet 11.1 to answer the following questions.


Worksheet 11.1

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a. How much would Ashley have to invest today, in one lump sum, to end up with $50,000 in 8 years

b. If she’s starting from scratch, how much would she have to put away annually to accumulate the needed capital in 8 years?

c. 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 8 years?

d. 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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Related Book For  book-img-for-question

Personal Financial Planning

ISBN: 9781439044476

12th Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley

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