Accumulating the additional money

Question: Over the past several years, Helen Chang has been able to save regularly. As a result, today she has $14,188 in savings and investments. She wants to establish her own business in 5 years and fells she will need $50,000 to do so.

1) If Helen can earn 12% on her money, how much will her $14,188 be worth in about 5 years? Will Helen have the $50,000 she needs? If not, how much more will she need?

2) Given your answer to part a, how much will Helen have to save each year over the next 5 years to accumulate the additional money, assuming she can earn interest at a rate of 12%?

3) If Helen can afford to save only $2000 a year, given your answer to part a, will she have the $50,000 she needs to start her own business in 5 years?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Accumulating the additional money
Reference No:- TGS01798261

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)

2015 ┬ęTutorsGlobe All rights reserved. TutorsGlobe Rated 4.8/5 based on 34139 reviews.