Over the past several years, Catherine Lee has been able to save regularly. As a result,...

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Finance

Over the past several years, Catherine Lee has been able to saveregularly. As a result, she has $58,467 in savings and investmentstoday. She wants to establish her own business in four years andfeels she will need $100,000 to do so. Use the followingtable to answer the questions.
If she can earn 3% on her money, how much will her $58,467 insavings/investments be worth in 4 years? Round the answer to thenearest cent. Round FV-factor to three decimal places.
Calculate your answer based on the FV-factor.
$

Calculate your answer based on the financial calculator.
$

Will Catherine have the $100,000 she needs?
-Select-Yes/No?

If not, how much more money will she need? Round the answer to thenearest cent. Round FV-factor to three decimal places.
Calculate your answer based on the FV-factor.
$

Calculate your answer based on the financial calculator.
$
Given your answer to part a, how much willCatherine have to save each year over the next 4 years toaccumulate the additional money? Assume that she can earn interestat a rate of 3%. Round the answer to the nearest cent. RoundFVA-factor to three decimal places.
Calculate your answer based on the FVA-factor.
$

Calculate your answer based on the financial calculator.
$
If Catherine can afford to save only $4,000 a year, then givenyour answer to part a, will she have the $100,000she needs to start her own business in 4 years?
-Select-Yes/No?

Answer & Explanation Solved by verified expert

4.4 Ratings (643 Votes)

Answer a Using FVfactor Current Saving 58467 Desired Balance after 4 years 100000 Interest Rate 3 Accumulated Sum 58467 FV of 1 3 4 Accumulated Sum 58467 1126 Accumulated Sum See Answer

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Over the past several years, Catherine Lee has been able to saveregularly. As a result, she has $58,467 in savings and investmentstoday. She wants to establish her own business in four years andfeels she will need $100,000 to do so. Use the followingtable to answer the questions.If she can earn 3% on her money, how much will her $58,467 insavings/investments be worth in 4 years? Round the answer to thenearest cent. Round FV-factor to three decimal places.Calculate your answer based on the FV-factor.$ Calculate your answer based on the financial calculator.$ Will Catherine have the $100,000 she needs?-Select-Yes/No?If not, how much more money will she need? Round the answer to thenearest cent. Round FV-factor to three decimal places.Calculate your answer based on the FV-factor.$ Calculate your answer based on the financial calculator.$ Given your answer to part a, how much willCatherine have to save each year over the next 4 years toaccumulate the additional money? Assume that she can earn interestat a rate of 3%. Round the answer to the nearest cent. RoundFVA-factor to three decimal places.Calculate your answer based on the FVA-factor.$ Calculate your answer based on the financial calculator.$ If Catherine can afford to save only $4,000 a year, then givenyour answer to part a, will she have the $100,000she needs to start her own business in 4 years?-Select-Yes/No?