You want

# You want - \$55,332 10.976 = \$5,041 annual payment of the...

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You want \$100,000 after 8 years in order to start a business. Currently, you have \$26,000, which may be invested to earn 7% annually. How much additional money must you set aside each year if the funds also earn 7% in order to meet your goal of \$100,000 at the end of 8 years? FV of \$26,000 = 1.718 x \$26,000 = \$44,668 \$100,000 - \$44,668 = \$55,332 / 10.260 = \$5,393 annual payment at the end of the year
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Unformatted text preview: \$55,332 / 10.976 = \$5,041 annual payment of the beginning of the year By how much would your answer differ if you invested the additional funds at the beginning of each year instead of at the end? If you made the payment at the beginning of the year the different would be \$352....
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