Lily wants to take the next five years off work to travel around the world. She estimates her annual cash needs at $40,000 (if she needs more, she'll work odd jobs). Lily believes she can invest her savings at 8% until she depletes her funds.
Requirements
1. How much money does Lily need now to fund her travels?
2. After speaking with a number of banks, Lily learns she'll be able to invest her funds only at 6%. How much does she need now to fund her travels?