Josie wants to be able to celebrate her graduation from CSULA in 55 years. She found an annuity that is paying 2%. Her goal is to have $4,500.00. Assume the interest rate remains the same while the account is open. Round all answers to the nearest penny. How much should be deposited each week?

Josie wants to be able to celebrate her graduation from CSULA in 55 years. She found an annuity that is paying 2%. Her goal is to have $4,500.00. Assume the interest rate remains the same while the account is open. Round all answers to the nearest penny. How much should be deposited each week?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter4: Going Into Debt

Section: Chapter Questions

Problem 28AA

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First let us understand the major points in the question briefly:

Investment= P500,000 for Auto Wash Business in a city of 400,000 population.
Equipment= Wash average 12 cars/hour + two men operates + small hand work.
Hire= Two men to work 8 hour a day + 6 days/week + 50 week/year + 2 week vacation/year
Employee hourly rate= P25.00/hour
Income= P25.00/car wash + the owner is employed at a job that pays P25, 000/month
Out-of-pocket miscellaneous costs= P8,500/month
Write of investment within 5 years
Capital of current business is 15%
Rate of return investment should be 20%

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