Amanda wants to take the next four years off work to travel around the world. She estimates her annual cash needs at $26,000 (if she needs more, she will work odd jobs). Amanda believes she can invest her savings at 12% until she depletes her funds. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) Read the requirements. (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Requirement 1. How much money does Amanda need now to fund her travels? (Round your answer to the nearest whole dollar.) With the 12% interest rate, Amanda needs Requirement 2. After speaking with a number of banks, Amanda learns she will only be able to invest her funds at 6%. How much does she need now to fund her travels? (Round your answer to the nearest whole dollar.) With a 6% interest rate, Amanda would need If Amanda's savings are earning a lower interest rate (6%), she will need to save to be able to withdraw $26,000 per year.
Amanda wants to take the next four years off work to travel around the world. She estimates her annual cash needs at $26,000 (if she needs more, she will work odd jobs). Amanda believes she can invest her savings at 12% until she depletes her funds. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) Read the requirements. (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Requirement 1. How much money does Amanda need now to fund her travels? (Round your answer to the nearest whole dollar.) With the 12% interest rate, Amanda needs Requirement 2. After speaking with a number of banks, Amanda learns she will only be able to invest her funds at 6%. How much does she need now to fund her travels? (Round your answer to the nearest whole dollar.) With a 6% interest rate, Amanda would need If Amanda's savings are earning a lower interest rate (6%), she will need to save to be able to withdraw $26,000 per year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Amanda wants to take the next four years off work to travel around the world. She estimates her annual cash needs at $26,000 (if she needs more, she will work odd jobs). Amanda believes she can invest her savings at 12% until she depletes her funds.
(Click the icon to view Present Value of $1 table.)
(Click the icon to view Present Value of Ordinary Annuity of $1 table.)
(Click the icon to view Future Value of $1 table.)
Read the requirements.
(Click the icon to view Future Value of Ordinary Annuity of $1 table.)
Requirement 1. How much money does Amanda need now to fund her travels? (Round your answer to the nearest whole dollar.)
With the 12% interest rate, Amanda needs
Requirement 2. After speaking with a number of banks, Amanda learns she will only be able to invest her funds at 6%. How much does she need now to fund her travels? (Round your answer to the nearest whole dollar.)
With a 6% interest rate, Amanda would need
If Amanda's savings are earning a lower interest rate (6%), she will need to save
to be able to withdraw $26,000 per year.
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