6. After graduation, you and a few business partners begin a small business. The first year, earn a profit of $10,000. Your profit increases by 12% each year. As a team, you and your business partners have decided to invest all of your profits into an account that you will use to fund a business expansion. Money in the account earns 6% compound annual interest. Use this information to answer the following questions. a. How much would be available in the account at the end of 10 years to fund business expansion?
6. After graduation, you and a few business partners begin a small business. The first year, earn a profit of $10,000. Your profit increases by 12% each year. As a team, you and your business partners have decided to invest all of your profits into an account that you will use to fund a business expansion. Money in the account earns 6% compound annual interest. Use this information to answer the following questions. a. How much would be available in the account at the end of 10 years to fund business expansion?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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6. After graduation, you and a few business partners begin a small business. The first year, earn a profit of $10,000. Your profit increases by 12% each year. As a team, you and your business partners have decided to invest all of your profits into an account that you will use to fund a business expansion. Money in the account earns 6%
a. How much would be available in the account at the end of 10 years to fund business expansion?
(please explain how to solve this in steps using formulas and showing how :)
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