You wish to start a business and will need a total of $50,000 to get started. You have $20,000 currently saved and would like to start the business in 5 years times. You believe you can earn 12% on invested funds. How much do you need to add to your investment account at the end of every year in order to achieve your goal?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
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You wish to start a business and will need a total of $50,000 to get started. You have $20,000 currently saved and would like to start the business in 5 years times. You believe you can earn 12% on invested funds.

How much do you need to add to your investment account at the end of every year in order to achieve your goal?

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