Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[18 point] etin Ikmen, the owner of Sackville Plastics, has been investing $400 per month since the end of January 2010 to create a venture

image text in transcribed

[18 point] etin Ikmen, the owner of Sackville Plastics, has been investing $400 per month since the end of January 2010 to create a venture capital fund for his daughter to start her own business when she turns 25 at the end of January in 2030 . The investment fund is expected to earn an average of 6% APR annually (compounded monthly). a. [5 point] How much will she have to start her business? b. [4 point] How much interest will be earned over the 20 years? c. [3 point] He wanted to have $250,000 saved. How much should he have been saving at the end of each month? d. [6 point] It is too late to change his saving pattern, so it will just take longer to accumulate $250,000. Approximately how long will it take? [18 point] etin Ikmen, the owner of Sackville Plastics, has been investing $400 per month since the end of January 2010 to create a venture capital fund for his daughter to start her own business when she turns 25 at the end of January in 2030 . The investment fund is expected to earn an average of 6% APR annually (compounded monthly). a. [5 point] How much will she have to start her business? b. [4 point] How much interest will be earned over the 20 years? c. [3 point] He wanted to have $250,000 saved. How much should he have been saving at the end of each month? d. [6 point] It is too late to change his saving pattern, so it will just take longer to accumulate $250,000. Approximately how long will it take

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Benchmarking Islamic Finance

Authors: Mohd Ma'Sum Billah

1st Edition

0367546469, 978-0367546465

More Books

Students also viewed these Finance questions