Use Worksheet 11.1. Phoebe Jones 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, what she would really like to do is open a bookstore of her own. She would like to open her store in about eight years and figures she'll need about $ 75,000 in capital to do so. Given that Phoebe thinks she can make about 8 percent on her money, use Worksheet 11.1 to answer the following questions.

1. How much would Phoebe have to invest today, in one lump sum, to end up with $75,000 in eight years? Round the answer to two decimal places.

$

1. 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.

$

1. How about if she already has $20,000 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.

$

DETERMINING AMOUNT OF INVESTMENT CAPITAL
Financial goal:
	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		%	1.000
	4.	Required Lump Sum Investment
		line 1 line 3	$-
B.	Making a Series of Investments over Time:
	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		%	1.000
	7.	Terminal Value of Initial Investment
		line 5 line 6	$-
	8.	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		%	0.00
	10.	Series of Annual Investments Required over Time
		line 8 line 9	$-
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 youre starting from scratchi.e., there is no initial investmententer zero on line 5, skip lines 6 and 7, 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.