Rachel wants to take the next six years off work to travel around the world. She estimates her annual cash needs at $30,000 (if she needs more, she'll work odd jobs). Rachel believes she can invest her savings at 10% until she depletes her funds. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) Requirements 1. 2. (Click the icon to view the future value table.) How much money does Rachel need now to fund her travels? After checking with a number of banks, Rachel learns she'll be able to invest her funds only at 4%. How much does she need now to fund her travels? Requirement 1. How much money does Rachel need now to fund her travels? Calculate how much money Rachel needs now to fund her travels. (Round your answers to the nearest whole dollar.) With the 10% interest rate, Rachel needs Requirement 2. After checking with a number of banks, Rachel learns she'll be able to invest her funds only at 4%. How much does she need now to fund her travels? Calculate how much she needs to fund her travels if she didn't get the 10% interest rate she had originally planned. (Round your answers to the nearest whole dollar.) With a 4% interest rate, Rachel would need If Rachel's savings are earning a lower interest rate (4%), she'll need to save to be able to withdraw $30,000 per year.
Rachel wants to take the next six years off work to travel around the world. She estimates her annual cash needs at $30,000 (if she needs more, she'll work odd jobs). Rachel believes she can invest her savings at 10% until she depletes her funds. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) Requirements 1. 2. (Click the icon to view the future value table.) How much money does Rachel need now to fund her travels? After checking with a number of banks, Rachel learns she'll be able to invest her funds only at 4%. How much does she need now to fund her travels? Requirement 1. How much money does Rachel need now to fund her travels? Calculate how much money Rachel needs now to fund her travels. (Round your answers to the nearest whole dollar.) With the 10% interest rate, Rachel needs Requirement 2. After checking with a number of banks, Rachel learns she'll be able to invest her funds only at 4%. How much does she need now to fund her travels? Calculate how much she needs to fund her travels if she didn't get the 10% interest rate she had originally planned. (Round your answers to the nearest whole dollar.) With a 4% interest rate, Rachel would need If Rachel's savings are earning a lower interest rate (4%), she'll need to save to be able to withdraw $30,000 per year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Rachel wants to take the next six years off work to travel around the world. She estimates her annual cash needs at $30,000 (if she needs more, she'll work odd jobs). Rachel believes she can invest her savings at 10% until she depletes her funds.
(Click the icon to view the present value annuity table.) (Click the icon to view the present value table.)
(Click the icon to view the future value annuity table.)
Requirements
1.
2.
(Click the icon to view the future value table.)
How much money does Rachel need now to fund her travels?
After checking with a number of banks, Rachel learns she'll be able to invest her funds only at 4%. How much does she need now to fund her travels?
Requirement 1. How much money does Rachel need now to fund her travels?
Calculate how much money Rachel needs now to fund her travels. (Round your answers to the nearest whole dollar.)
With the 10% interest rate, Rachel needs
Requirement 2. After checking with a number of banks, Rachel learns she'll be able to invest her funds only at 4%. How much does she need now to fund her travels?
Calculate how much she needs to fund her travels if she didn't get the 10% interest rate she had originally planned. (Round your answers to the nearest whole dollar.)
With a 4% interest rate, Rachel would need
If Rachel's savings are earning a lower interest rate (4%), she'll need to save
to be able to withdraw $30,000 per year.
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