Use Worksheet 11.1. Alison Conroy 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 eight years and figures she'll need about $ 40,000 in capital to do so. Given that she thinks she can make about 8 percent on her money, use Worksheet 11.1 to answer the following questions.

1. How much would Alison have to invest today, in one lump sum, to end up with $ 40,000 in eight years? Round the answer to two decimal places.

   $

2. If she's starting from scratch, how much would she have to put away annually to accumulate the needed capital in eight years? Round the answer to two decimal places.

   $

3. How about if she already has $ 15,000 socked away; how much would she have to put away annually to accumulate the required capital in eight years? Round the answer to two decimal places.