Find the total annual savings

Reference no: EM1316238

Total annual savings needed to be calculated considering time value of money.

How much would Kevin and Stacy have to save in 2008 to be on track in meeting their goals? Determine the following:

The emergency fund (remember they already have some money in a money market account)

Down payment on the new car

Remodeling expenses for the lake house

Samantha's college education fund (remember they already have some money in McDonalds stock)

Their retirement investment fund (IRAs)

Use future value calculations to calculate the amount that must be saved annually for their emergency fund, car, college, and remodeling goals. Assume Kevin and Stacy can earn 3.5% after taxes on their emergency fund and car goals, 8% after taxes on the remodeling goal, and 10% on the college fund. You will not use future value calculations when figuring the amount of savings required to meet their 401(k) and retirement fund goals since you were told the annual contribution they wanted to make. Remember to label each goal and add the required sums for each goal together to find the TOTAL ANNUAL SAVINGS required to fund their goals.

Reference no: EM1316238

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