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How much money will he need to transfer

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Reference no: EM13201125

Studebaker is eligible to put 12,000 before tax dollars each year into a tax deferred annuity (TDA). in order to invest in a TDA, however, he must have his salary reduced, and the case indicates that he can afford a reduction in his spendable income of 3,052 each year without disrupting his lifestyle. one investment option is to increase the amount placed into a TDA each year to the legal maximum of $12,000 and move funds from the money market to cover the resulting shortfall in studebaker spendable income. how much money will he need to transfer each year from the money market?

Reference no: EM13201125

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