Reference no: EM133053826

Question - Taylor Swift has decided that she's going to start her own scarf company. Instead of building from the ground up though, she is going to save up some money and acquire an existing manufacturer. She plans to buy the scarf company in 4 years for $3,800,000 and expects it to cost her $110,000 in overhead and maintenance each year for the following 14 years, which she will pay at the end of the year. She is donating all the profits from this company, so she will covering all associated costs herself. How much does Taylor need to save annually starting NOW if she is going to buy and maintain this company if she saves for 4 annual  periods? She is planning on putting her savings into an account with a 2.2% annual return.  Round to the nearest dollar.