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Worksheet 11.1 Complete the worksheet based on the following information NAME Ashley Corwin is a young career woman who is 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 open a bookstore of her own. She would like to open the store in about 8 years and figures she'll need about $50,000 in capital to do so. Given that she thinks she can make about 10% on her money, use the worksheet to answer these questions. A. How much would Ashley have to invest today, in one lump sum, to end up with $50,000 in 8 years? B. If she's starting from scratch, how much will she have to put away annually to reach the needed capital in 8 years? C. If she already has $10,000 socked away; how much will she have to put away annually to accumulate the required capital in 8 years? D. 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. DETERMINING AMOUNT OF INVESTMENT CAPITAL QUESTION C (below) . . Financial Goal: Accumulate $50,000 in 8 years to open a store QUESTION A (below) 1. Targeted Financial Goal (see Note 1) $ 2. Projected Average Return on Investments % A. Finding a Lump Sum Investment: 3. Future Value Factor, from Appendix A based on years to target date and a projected average return on investment of % 4. Required Lump Sum Investment line 1 + line 3 $ B. Making a Series of Investments over Time: QUESTION B (below) 5. Amount of Initial Investment, if any (see Note 2) $ 6. Future Value Factor, from Appendix A based on years of target date and a projected average return on investment of % 7. Terminal Value of Initial Investment line 5 x line 6 $ Balance to come from Savings Plan line 1 - line 7 $ 9. Future Value Annuity Factor, from Appendix B based on years to target date and a projected average return on investment of % 10. Series of Annual Investments Required over Time line 8 + line 9 $ 8 . . 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-le, there is no initial investment-enter zero on 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