After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $25,000 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?

25,000 in 12 years = 25,000*(1.09)^12= $70,316

Value of $7,500 deposits in 6 years

Use financial calculator and input these values

N=6

PV=0

PMT=7,500

I=9

Compute FV= 56,425, after this

PV= 56,425

PMT= 15,000

I=9

N=6

Compute FV=$ 207,480

We will have (207,480+ 70,316) = $277,796 in 12 years to start our business.

Explanation:

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.