Abby owns a business that projects two years of strong cash flow, followed by a two-year hiatus
Question:
Abby owns a business that projects two years of strong cash flow, followed by a two-year hiatus while she pursues a graduate degree. She then plans to resume her business and is confident about the following two years of cash flow. At the end of each year, she will invest her profits in a fund that returns 3% compounded annually. Each investment will be made at the end of the year. Her expected investments are as follows:
Year 1: $50,000
Year 2: $78,000
Year 3: 0
Year 4: 0
Year 5: $84,000
Year 6: $89,000
If Abby meets her expectations, how much money will she have in this fund at the end of year 7?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: