2. Meet your investment goals - Calculating required capital How Much Capital Do You Need to Start Investing? down payment or save enough to take a year off and travel. In any situation, the first step is to identifying the amount of much risk are you willing to take for the return you expect. begin an investment plan that will make this a reality within 5 years. He currently has $3,000 saved for this purpose, and he wants the determine would like to save a total of $25,000 to cover his expenses for the year. If he invests the $3,000 today, the terminal value of this initial investment in 5 years (earning an average 5% return) will be means that he must accumulate the remaining through his annual savings plan to obtain the full $25,000 to cover his expenses for the year. Still assuming an average return on investment of 5%, the additional yearly investment required to rearingeal within 5 years is Suppose instead that Clancy had no capital saved and thus needed to accumulate the entire $25,000 in the next 5 years. In this case, his annual contribution would have to be investment plus the additional yearly payments, for a total of When he starts with no initial capital contribution, the amount he ends up contributing is equal to the sum of all annual contributions you calculated in the no-initial-capital scenario, for a total of Once Clancy has determined the annual amount he needs to save, the next step toward achieving his goal is coming up with an investment plan. False True If he invests the $3,000 today, the terminal value of this initial investment in 5 years (earning an average 5% return) will be means that he must accumulate the remaining through his annual savings plan to obtain the full $25,000 to cover his expenses for the year. Still assuming an average return on investment of 5%, the additional yearly investment required to reach Clancy's targeted financial goal within 5 years is If he invests the $3,000 today, the terminal value of this initial investment in 5 years (earning an average 5% return) will be means that he must accumulate the remaining through his annual savings plan to obtain the full $25,000 to cover his expenses for the year. Still assuming an average return on investment of 5%, the additional yearly investment required to reach Clancy's targeted financial goal within 5 years is Suppose instead that Clancy had no capital saved and thus needed to accumulate the entire $25,000 in the next 5 years. In this case, his annual contribution would have to be within 5 years is Suppose instead that Clancy had no capital saved and thus needed to accumulate the entire $25,000 in the next 5 years. In this case, his annual contribution would have to be If he invests the $3,000 today, the terminal value of this initial investment in 5 years (earning an average 5% return) will be means that he must accumulate the remaining through his annual savings plan to obtain the full $25,000 to cover his expenses for the year. Still assuming an average return on investment of 5%, the additional yearly investment required to reach clancial within 5 years is Suppose instead that Clancy had no capital saved and thus needed to accumulate the entire $25,000 in the next 5 years. In this case, his annual contribution would have to be ends up contributing is equal to the sum of all annual contributions you calculated in the no-initial-capital scenario, for a total of Once Clancy has determined the annual amount he needs to save, the next step toward achieving his goal is coming up with an an. True or False: The appropriate investment plan depends only on the total amount of money ine intends to save, not on ine in False True 2. Meet your investment goals - Calculating required capital How Much Capital Do You Need to Start Investing? down payment or save enough to take a year off and travel. In any situation, the first step is to identifying the amount of much risk are you willing to take for the return you expect. begin an investment plan that will make this a reality within 5 years. He currently has $3,000 saved for this purpose, and he wants the determine would like to save a total of $25,000 to cover his expenses for the year. If he invests the $3,000 today, the terminal value of this initial investment in 5 years (earning an average 5% return) will be means that he must accumulate the remaining through his annual savings plan to obtain the full $25,000 to cover his expenses for the year. Still assuming an average return on investment of 5%, the additional yearly investment required to rearingeal within 5 years is Suppose instead that Clancy had no capital saved and thus needed to accumulate the entire $25,000 in the next 5 years. In this case, his annual contribution would have to be investment plus the additional yearly payments, for a total of When he starts with no initial capital contribution, the amount he ends up contributing is equal to the sum of all annual contributions you calculated in the no-initial-capital scenario, for a total of Once Clancy has determined the annual amount he needs to save, the next step toward achieving his goal is coming up with an investment plan. False True If he invests the $3,000 today, the terminal value of this initial investment in 5 years (earning an average 5% return) will be means that he must accumulate the remaining through his annual savings plan to obtain the full $25,000 to cover his expenses for the year. Still assuming an average return on investment of 5%, the additional yearly investment required to reach Clancy's targeted financial goal within 5 years is If he invests the $3,000 today, the terminal value of this initial investment in 5 years (earning an average 5% return) will be means that he must accumulate the remaining through his annual savings plan to obtain the full $25,000 to cover his expenses for the year. Still assuming an average return on investment of 5%, the additional yearly investment required to reach Clancy's targeted financial goal within 5 years is Suppose instead that Clancy had no capital saved and thus needed to accumulate the entire $25,000 in the next 5 years. In this case, his annual contribution would have to be within 5 years is Suppose instead that Clancy had no capital saved and thus needed to accumulate the entire $25,000 in the next 5 years. In this case, his annual contribution would have to be If he invests the $3,000 today, the terminal value of this initial investment in 5 years (earning an average 5% return) will be means that he must accumulate the remaining through his annual savings plan to obtain the full $25,000 to cover his expenses for the year. Still assuming an average return on investment of 5%, the additional yearly investment required to reach clancial within 5 years is Suppose instead that Clancy had no capital saved and thus needed to accumulate the entire $25,000 in the next 5 years. In this case, his annual contribution would have to be ends up contributing is equal to the sum of all annual contributions you calculated in the no-initial-capital scenario, for a total of Once Clancy has determined the annual amount he needs to save, the next step toward achieving his goal is coming up with an an. True or False: The appropriate investment plan depends only on the total amount of money ine intends to save, not on ine in False True