Question

You own a pet wholesale business. You sell fish. You would like to have a population of 300,000 neon tetra fish to sell to your retailers. If cared for well, neon tetras reproduce quickly. You estimate that your fish population can grow at a rate of 300% per year! Your goal is to have the 300,000 fish at the end of 5 years. How many fish do you need to start with, in order to reach your goal? (Round your answer to the nearest whole fish!)

Question

You wish to buy a cabin in 15 years. TODAY, the cabin costs $150,000. You believe the price of the cabin will inflate at 4% annually. You want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now. If you can earn 10% annually on your investments, how much do you need to invest NOW, in order to be able to purchase the cabin?

Question

You invest $6,000 per year for 20 years. Earning 8% annual return, how much money do you have at the end of the 20 years?