Gharvey quit his job at state university where he earned $45,000 a year. he figures his entrepreneurial talent or forgone entrepreneurial income to be $5,000 a year. to start the business, he cashed in $100,000 in bonds that earned 10% interest annually to buy a software company, extreme gaming. in the first year, the firm sold 11,000 units of software at $75 each. of the $75, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. the explicit costs of harvey’s firm in the first year were

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%

i might look it up later.

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.