Mrs. John wants to take the next three years of work to travel around the world. She estimates her            annual cash needs at $20,000. Mrs. John believes she can invest her savings at 10% until she depletes     her funds. Table factor at 10% is 2.4869 and at 7% is 2.6243           To find out how much she should invest now to fund her future cash flow if she invests at 10%. Or what to invest if only earn 7 %.

The Jeffersons have asked you what would be needed to fund the children’s future college costs. Assume each child will begin college at age 18 and graduate in four years. Assume current costs are $24,000 per year and are expected to increase by 5% per year and investments earn 7%.   A.      Assuming no existing assets are dedicated to college, what is the annual savings amount required to fund the children’s education? The Jeffersons’ goal is to have an amount at the beginning of the freshman year for each child that is sufficient to fund a serial payment covering the $24,000 of current costs of college adjusted for inflation for each of the four years of college. Please include your calculator keystroke inputs [PV, I/YR, N, FV, and PMT (if needed)] for each step of this calculation. Also include whether any PMTs are in the end mode or the begin mode. B.      What would you say to the Jeffersons about their education funding situation? Write a script of a single paragraph as if you…

You have two 8-years old twin children, and you anticipate that when they will turn 18 (exactly 10 years from now) they will need $500,000 to cover living and tuition college expenses. Suppose that the discount rate is 10%. 1. If you want to meet this negative cash flow only with current savings, how much would you need to set aside right now? 2. Suppose, instead, that want to meet this negative cash flow only saving a constant amount at the end of each year, for the next 10 years. What is the amount you should set aside each year?

Use a financial calculator or computer software program to answer the following questions: a) Melanie is trying to save money for retirement and has a future goal of $750,000 at the end of 20 years. Determine the present value of her goal using a discount rate of 12%. b) How would the present value change if the $750,000 is to be received at the end of 15 years instead? Explain the impact and show your work?

Amanda and Zack are saving for their first child. They know he/she will be expensive and would like an extra $5000 in the bank when the baby comes. Amanda and Zack are not planning to have a baby for at least 3 years. They found a savings account that will earn 4.7% interest compounded quarterly. How much money should they invest to be financially prepared for their first child? Round to the nearest dollar.

Angela wishes to buy a boat in five years that presently costs $150,000. She expects the cost of the boat to increase due to inflation by 3% per year for the next two years and 4% per year the following three years. She also wants to spend $50,000 per year for 6 years beginning at the end of 10 years from today. How much must she save each year for the next 5 years if she can earn 6% on her investments?   a. $66,302.67   b. $64,347.13   c. $65,946.95   d. $61,349.81   e. None of these are correct

Roxanne plans on going on vacation to Europe in four years. The trip will cost $4,000. She proposes to finance the trip by investing a sum of money now at 8% compounded annually. How much should Roxanne invest now in order to obtain her goal of $4,000? Answer the following questions: Fill in the factor that you used to solve the problem :  How much should Roxanne invest now in order to obtain her goal (round up to the nearest dollar)?

Please help me answer the following time value of money question. Andrew is a high speed 25 year old. He wants to have a quarter of a million dollars by the time he reaches 60.  If he can earn 6%, how much does he need to invest to reach his goal?

An individual (with log-utility) wants to maximize her happiness level over her adolescence and adult periods. At the age 18 the individual inherits one hundred thousand dollars and must decide how much to consume now (when she is young, period t) and how much to save for her adulthood (period t +1) to maximize the sum of utility over different life stages. The bank will pay interest rate of 5% of every dollar she deposits. The individual discounts future utilities at ß = 0.8. What is the optimal consumption in the adolescent period? 55555.56 55561.55 55558.55 55564.56