Question: How much would Kevin and Stacy have to save in 2008 to be on track in meeting their goals? Estimate 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)
Apply future value computations to compute the amount that must be saved yearly for their emergency fund, car, college, and remodeling goals. suppose Kevin and Stacy can earn 3.5 percent after taxes on their emergency fund and car goals, 8 percent after taxes on the remodeling goal, and 10 percent on the college fund. You will not use future value calculations when figuring the amount of savings required to meet their 401(k) & retirement fund goals since you were told the year contribution they wanted to make. Remember to label each goal & add the required sums for each goal together to find the TOTAL ANNUAL SAVINGS required funding their goals.