Ashley Olson is early in her career and is now employed as the managing editor of a well known business journal Although she thoroughly enjoys her job and the people she works with, she would really like to be a literary agent She would like to go on her own in about 7 years and figures she'll need about $75,000 in capital to do so Given that she thinks she can make about 11 percent on her money, use Worksheet 11 1 (Attached Below) to answer the following questions How much would Ashley have to invest today, in one lump sum, to end up with $75,000 in 7 years Round the answer to the nearest cent $ If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in 7 years Round the answer to the nearest cent $ How about if she already has $5,000 socked away how much would she have to put away annually to accumulate the required capital in 7 years Round the answer to the nearest cent $ Given that Ashley has an idea of how much she needs to save, briefly explain how she could use an investment plan to help reach her objective The input in the box below will not be graded, but may be reviewed and considered by your instructor DETERMINING AMOUNT OF INVESTMENT CAPITAL NEEDED Financial goal , I Y 1 Targeted Financial Goal (see Note 1), Desired Future Value $ 2 Projected Average Return on Investments A Finding a Lump Sum Investment to Fund Targeted Financial Goal 3 Future Value of a Single Cash Flow based on years until desired financial goal stated in line 1 (FV) given an average return of solve for lump sum $ investment as present value (PV) B Making a Series of Investments over Time 4 Amount of Initial Investment, if any (see Note 2) $ 5 Future Value of Initial Investment based on N , and PV solve for future value (FV) $ 6 Balance to come from Savings Plan line 1 line 5 $ 7 Future Value Annuity Amount based on N I Y , and future value of annuity (FVA) solve for annuity amount (PMT) $ Note 1 The targeted financial goal is the amount of money you want to accumulate by some target date in the future Note 2 If you're starting from scratch with no initial investment enter zero on line 4, skip line 5, and then use the total targeted financial goal (from line 1) as the amount to be funded from a savings plan now proceed with the rest of the worksheet

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Ashley Olson is early in her career and is now employed as the managing editor of a well-known business journal. Although she thoroughly enjoys her

Ashley Olson is early in her career and is now employed as the managing editor of a well-known business journal. Although she thoroughly enjoys her job and the people she works with, she would really like to be a literary agent. She would like to go on her own in about 7 years and figures she'll need about $75,000 in capital to do so. Given that she thinks she can make about 11 percent on her money, use Worksheet 11.1 (Attached Below) to answer the following questions.

How much would Ashley have to invest today, in one lump sum, to end up with $75,000 in 7 years? Round the answer to the nearest cent.

$
If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in 7 years? Round the answer to the nearest cent.

$
How about if she already has $5,000 socked away; how much would she have to put away annually to accumulate the required capital in 7 years? Round the answer to the nearest cent.

$
Given that Ashley has an idea of how much she needs to save, briefly explain how she could use an investment plan to help reach her objective.

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

DETERMINING AMOUNT OF INVESTMENT CAPITAL NEEDED Financial goal: % . , I/Y = 1. Targeted Financial Goal (see Note 1), Desired Future Value $ 2. Projected Average Return on Investments A. Finding a Lump-Sum Investment to Fund Targeted Financial Goal: 3. Future Value of a Single Cash Flow based on years until desired financial goal stated in line 1 (FV) given an average return of %; solve for lump-sum $ investment as present value (PV) B. Making a Series of Investments over Time: 4. Amount of Initial Investment, if any (see Note 2) $ 5. Future Value of Initial Investment based on N= %, and PV; solve for future value (FV) $ 6. Balance to come from Savings Plan line 1 - line 5 $ 7. Future Value Annuity Amount based on N= I/Y = %, and future value of annuity (FVA); solve for annuity amount (PMT) $ Note 1: The "targeted financial goal" is the amount of money you want to accumulate by some target date in the future. Note 2: If you're starting from scratch with no initial investment-enter zero on line 4, skip line 5, and then use the total targeted financial goal (from line 1) as the amount to be funded from a savings plan; now proceed with the rest of the worksheet