Discuss the major goals of the family

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Tom is 22 years of age. He plans on buying a car at age of 25, and a new car every 5 years thereafter. He plans on getting married at age of 30, and 1 child at age of 31. Tom and his spouse both plan on buying a house at age 35 to be financed by a loan which requires a 20% deposit over a twenty-year term. The house will provide them with a place to stay and will provide some rental income. Tom needs to save for the education costs of his child. Tom and his spouse both then need to plan for their comfortable retirement.

Required:

Please calculate and discuss the major goals of the family and how would they go about achieving each goal. Please be specific to how they would achieve each goal, and show the necessary, hypothetical calculations in the form of annuities, time value of money, budgets etc.

Reference no: EM132664103

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