Question - Martha wants to take the next five years off work to travel around the world. She estimates her annual cash needs at $31,000 (if she needs more, she will work odd jobs). Martha believes she can invest her savings at 12% until she depletes her funds.
Requirements
1. How much money does Martha need now to fund her travels?
2. After speaking with a number of banks, Martha learns she will only be able to invest her funds at 4%. How much does she need now to fund her travels?