1. You have recently earned the Certified Financial Planner designation and have increased your client base because of it. You have just added some members of the Gilligans Island cast to your list of clients. Some of their stories and investment goals are described below:

A. Bob Denver (Gilligan) received a large lump sum as compensation for the Season 3 DVD in the amount of $2.1 million. He wants to purchase a home on the beach in Northern California. You advise him to use the entire $2.1 million plus a $3.2 million loan from a financial institution that will charge him a 6.1% annual interest rate over ten years. His first payment is due on August 5, 2019.

Determine the monthly payment on the loan.

2. Alan Hale Jr (the Skipper) currently has $3.8 million invested in a well-diversified portfolio of securities earning 12%. Alan has two children (ages 15 and 10) and would like to create a trust fund for each child so that each would have $10 million on their 25^th birthdays (10 and 15 years from today). Alan would like to save quarterly for the next 5 years to provide for his children.

Determine the quarterly amount (beginning today) Alan must save to reach the goal for both children assuming the new funds will earn 12% annually.

C. Tina Louise (Ginger) has recently seen her entertainment income reduced to zero because the industry has typecast her. Luckily, she has $10 million invested in a retirement fund earning 10% per year. She is considering retirement in three years when she turns 60. Tina believes she can live until she is 90.

Determine the monthly retirement income if she earns 6% during retirement years if she wants to leave $1 million to the Howell Estate on the date of her death.