Roy the owner of the Outdoors Pro shop had the building appraised and inspected and knows that it will need a new roof in about 7 years at an estimated cost of $15,000. After the first year (honeymoon phase) of the business, Roy decides to set some money aside in an account earning 8% interest compounded quarterly. How much will he need to invest to have the $15,000 for a roof in 6 years?

Roy the owner of the Outdoors Pro shop had the building appraised and inspected and knows that it will need a new roof in about 7 years at an estimated cost of $15,000. After the first year (honeymoon phase) of the business, Roy decides to set some money aside in an account earning 8% interest compounded quarterly. How much will he need to invest to have the $15,000 for a roof in 6 years?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter13: Investment Fundamentals

Section: Chapter Questions

Problem 3FPC

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