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You have a newborn son. You need to plan for his future and there are three things that you would like to be able to provide him. At the age of 16, you want to buy him a car which may cost $20,000. At the age of 18, you could like to send him to college, costing $25,000 each year for 4 years. At the age of 23, you could like to be able to help him start a new business costing you $30,000. You plan to start on his 1st birthday making annual deposits throughout his 16th birthday. Suppose a 10% interest rate, how much money will you require to deposit each year to be able to meet these financial goals?
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Use this information to purpose a cash budget for the months of May and June, using the template provided in Doc Sharing. What are the sections of a cash budget, and what is included in each section?
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