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Personal Financial Planning 13th Edition by Lawrence Gitman,Michael Joehnk,Randy Billingsley
Edition 13ISBN: 978-1111971632Personal Financial Planning 13th Edition by Lawrence Gitman,Michael Joehnk,Randy Billingsley
Edition 13ISBN: 978-1111971632 Exercise 29
Over the past several years, Gwen Fong has been able to save regularly. As a result, she has $54,188 in savings and investments today. She wants to establish her own business in five years and feels she will need $100,000 to do so.
a. If she can earn 4 percent on her money, how much will her $54,188 in savings/investments be worth in five years Will Gwen have the $100,000 she needs If not, how much more money will she need
b. Given your answer to part a, how much will Gwen have to save each year over the next five years to accumulate the additional money Assume that she can earn interest at a rate of 4 percent.
c. If Gwen can afford to save only $4,000 a year, then given your answer to part a, will she have the $100,000 she needs to start her own business in five years
a. If she can earn 4 percent on her money, how much will her $54,188 in savings/investments be worth in five years Will Gwen have the $100,000 she needs If not, how much more money will she need
b. Given your answer to part a, how much will Gwen have to save each year over the next five years to accumulate the additional money Assume that she can earn interest at a rate of 4 percent.
c. If Gwen can afford to save only $4,000 a year, then given your answer to part a, will she have the $100,000 she needs to start her own business in five years
Explanation
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Future value is the worth of present inv...
Personal Financial Planning 13th Edition by Lawrence Gitman,Michael Joehnk,Randy Billingsley
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